A host of incoming high frequency indicators are looking upbeat and consumer confidence is returning gradually, an article on the state of economy written by RBI officials has observed.
The article published in the RBI Bulletin also stated the global economy remains hostage to heightened uncertainty, with Omicron sparking fresh containment measures.
The Indian economy bounced back strongly in the second quarter of 2021-22, with GDP surpassing its pre-pandemic levels, and inflation broadly aligning with the target.
“The Indian economy continues to forge ahead, emerging out of shackles of pandemic,” stated the article authored by RBI officials.
It further observed the ongoing revival is driven by a confluence of factors — release of pent-up demand, government’s push for capital expenditure, robust external demand and normal monsoon.
Faster resumption of contact-intensive services and speedy restoration of consumer confidence brightens near-term prospects, it said.
The RBI clarified that the views expressed in the article are those of the authors and do not necessarily represent the views of the Reserve Bank of India.