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24 OCT,2021 | MEDC
RBI has rightly said that the need of the hour is to focus on various supply side reforms and ease structural infrastructure bottlenecks, rather than concentrate solely on economic normalization. Supply often creates its own demand, and policy support for a sustained and inclusive economic recovery may be needed for longer than expected. RBI emphasized that it will continue to support growth going ahead, deriving comfort from the fact that softer-than-expected food prices have eased overall inflation into a closer alignment with official targets. The world over, resurgent demand is being choked by supply-side bottlenecks, and this is delaying a sustained economic recovery. RBI is wisely following a calibrated approach to policy normalization, as any premature tightening could risk stagflation. India needs to be particularly careful … while the nation is probably on the revival path, it is still finding its way out of one of the most complex Covid-related contractions to hit any major economy.
*Photo Credit: Google
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Interactive Meeting with Mr. Jaykumar Rawal Hon'ble Minister for Tourism & Employment Guarantee Scheme Govt. of Maharashtra