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Economic revival beating predictions: RBI bulletin
Why is it in news?
- The Reserve Bank of India recently published its monthly bulletin. Economic revival is being the main focus of the experts this time.
Key takeaways of RBI Bulletin:
- Indian economy is pulling out of COVID-19’s deep abyss and is reflating at a pace that beats most predictions.
- Economic conditions have improved on the back of the uptick in agriculture and manufacturing.
- Analysis of 12 months ahead forward earnings reveals improvement in the outlook for many companies.
- Sectors such as auto and capital goods are expecting a turnaround in forward earnings.
- Healthcare, information technology and fast moving consumer goods firms were sighting stronger earnings outlook.
Way ahead:
- It is imperative for the Centre and States to continue with the countercyclical fiscal measures to sustain the momentum of the recovery.
- Capital expenditure, which collapsed in the first half of this fiscal, will need to be scaled up as a priority.
- Public investment in healthcare, social housing, education and environmental protection is the need of the hour to build a more resilient and inclusive economy.