RBI has stated that while economic growth has acquired traction, its pace is unevenWhile the international financial situation appears unsure, on the domestic front, financial healing has gained strength though the rate of enhancement is uneven.This is the Reserve Bank of India's (RBI) analysis of the current state of the economy, on which it has elaborated in its month-to-month bulletin for November 2021.
In the chapter on the state of economy, the central bank noted in the bulletin that indications of aggregate demand posit a brighter near-term outlook than previously.
On the supply side, the Rabi season has embeded in at an early stage a favorable note on the back of a record Kharif harvest and manufacturing is showing enhancement in total operating conditions, while services are in strong expansion mode .
In totality, the financial and credit conditions stay favorable for a long lasting economic recovery to take root, it even more said.At the same time, it highlighted how the pandemic had led to an enormous disturbance in global along with domestic economy triggering unpredictability as reflected in large swings in forecasts of growth and inflation for the financial gone by, i.e.
2020-21.
The pandemic-induced lockdowns resulted in significant down revision in the development projection for 2020-21 and the subsequent opening up of the economy led to an enhanced development outlook.