India On Revival Path Despite Global Crisis: RBI Article

Mumbai : Despite the geopolitical crisis triggered by Russia's attack on Ukraine, India is on the path of revival. The reason for this is the country coming out of the third wave of the epidemic. However, given the global challenges, the risk remains. This is stated in an article by the Reserve Bank of India (RBI). In an article published in the RBI Bulletin on the topic 'State of the Economy', it has been said that the macroeconomic fundamentals of the country remain strong. But the risk remains given the impact of global activities. It said that as the global economy was still struggling to come out of the pandemic, the geopolitical crisis has increased uncertainty about the global macroeconomic and financial landscape. According to the article, rising oil and gas prices and volatility in financial markets are new challenges to the global revival. In these difficult times, India is making progress on the domestic front. The main reason for this is the country coming out of the effect of the third wave. The Reserve Bank has clarified that the views in the article are those of the authors and do not necessarily reflect the views of the central bank. This article has been written by RBI officials. It said that the global economy is facing adverse conditions from the attack on Ukraine. As oil prices hit multi-year highs, financial markets are volatile. This is a result of investing in assets considered safe, such as gold. According to the authors, "Amidst these difficult challenges, rising inflation and rising financial stability risks have weakened the global growth outlook." This may necessitate a reduction in global growth projections for 2022 and beyond. The article said that on the domestic front, services related to the services sector such as restaurants and cinema halls are now returning to normal. Movement indicators show significant improvement in March 2022. According to it, "With the improvement in the movement conditions and the opening of service sectors like cinema halls and restaurants, the pace of power generation in March is not only higher than the previous month but also the pre-pandemic level." Bill generation is above pre-pandemic levels. Toll collection has also increased in February 2022, despite the comparative effect being weak. The article said that due to increased movement, the consumption of diesel and petrol increased in February 2022. However, overall petroleum consumption remained low due to reduction in demand for aircraft fuel. Retail sales of vehicles have remained stagnant due to constraints in registration coupled with delivery time. According to this, the gross fiscal deficit has come down to 58.9 percent of the revised estimate during April-January in 2021-22. Source-Newreach