MUMBAI: Despite an increasingly hostile external environment, India is in a better position than many other countries to avoid the risk of a possible impasse with widespread deregulation, according to an RBI article on the state of the economy.
The article published in RBI’s June Bulletin said the global economic situation continues to deteriorate as rising commodity prices and financial market volatility have added to the uncertainty.
The article, authored by the team led by RBI Deputy Governor Michael Debabrata Patra, said, “Amidst this increasingly hostile external environment, India is better positioned than many other countries to avoid potential inflationary risks.” ”
Stagflation refers to a situation where inflation as well as unemployment are high, while demand in the economy remains stagnant.
Domestic economic activity is gaining strength, with most components of GDP crossing pre-pandemic levels, and said the inflation print for May has provided some respite as it registered a decline after seven months of sustained growth. Has been.
However, the central bank said that the opinions expressed in the article are those of the authors and do not necessarily represent their views. reserve Bank of India (RBI).
The article said that with a growth rate of 8.7 per cent in 2021-22, India’s gross domestic product (GDP) exceeded its pre-pandemic (2019-20) levels by 1.5 per cent and in 2022-23 The recovery so far has remained strong. ,
“Recoveries remained broadly on track. This demonstrates the resilience of the economy in the face of multiple shocks and the easing strength of macro fundamentals as India strives to achieve a sustainable high growth trajectory,” it said.
The recent actions of the Reserve Bank, which has demonstrated its commitment to price stability while supporting growth, bodes well in this environment.
Another article in the bulletin said that it is clear from the coming data that global growth has lost momentum in the first half of 2022.
“The outlook is fluid and uncertain. In this highly uncertain environment, our endeavor will be to track global GDP and subsequent inflation on as contemporary a basis as possible so that all stakeholders are warned in advance.” ,
The article attempts to bridge the gap between the availability and arrival of global GDP estimates and high-frequency indicators of global economic activity.
‘Industrial Revolution 4.0: Will it be different for India this time?’ But an article said that the new age technologies are expected to bring far-reaching changes in the production processes in the manufacturing sector of the country.
In terms of its involvement in the global value chain and technology intensity, the sector is considered to be in a relatively better position to reap the benefits of the emerging technological revolution.
“India’s advantage in technology exports and the presence of experienced professionals also provide an added advantage,” it said.
However, when it comes to the quality of human capital and the physical infrastructure required to take great leaps, India lags behind its competitors, it noted.
“Unless the vast labor force is skilled, the benefits from the IR-4 will more than be offset by the massive labor displacement,” the article said.
India has made great strides in the digital space, implementing unique, large-scale projects driven by public digital infrastructure, particularly in payments infrastructure.
The article published in RBI’s June Bulletin said the global economic situation continues to deteriorate as rising commodity prices and financial market volatility have added to the uncertainty.
The article, authored by the team led by RBI Deputy Governor Michael Debabrata Patra, said, “Amidst this increasingly hostile external environment, India is better positioned than many other countries to avoid potential inflationary risks.” ”
Stagflation refers to a situation where inflation as well as unemployment are high, while demand in the economy remains stagnant.
Domestic economic activity is gaining strength, with most components of GDP crossing pre-pandemic levels, and said the inflation print for May has provided some respite as it registered a decline after seven months of sustained growth. Has been.
However, the central bank said that the opinions expressed in the article are those of the authors and do not necessarily represent their views. reserve Bank of India (RBI).
The article said that with a growth rate of 8.7 per cent in 2021-22, India’s gross domestic product (GDP) exceeded its pre-pandemic (2019-20) levels by 1.5 per cent and in 2022-23 The recovery so far has remained strong. ,
“Recoveries remained broadly on track. This demonstrates the resilience of the economy in the face of multiple shocks and the easing strength of macro fundamentals as India strives to achieve a sustainable high growth trajectory,” it said.
The recent actions of the Reserve Bank, which has demonstrated its commitment to price stability while supporting growth, bodes well in this environment.
Another article in the bulletin said that it is clear from the coming data that global growth has lost momentum in the first half of 2022.
“The outlook is fluid and uncertain. In this highly uncertain environment, our endeavor will be to track global GDP and subsequent inflation on as contemporary a basis as possible so that all stakeholders are warned in advance.” ,
The article attempts to bridge the gap between the availability and arrival of global GDP estimates and high-frequency indicators of global economic activity.
‘Industrial Revolution 4.0: Will it be different for India this time?’ But an article said that the new age technologies are expected to bring far-reaching changes in the production processes in the manufacturing sector of the country.
In terms of its involvement in the global value chain and technology intensity, the sector is considered to be in a relatively better position to reap the benefits of the emerging technological revolution.
“India’s advantage in technology exports and the presence of experienced professionals also provide an added advantage,” it said.
However, when it comes to the quality of human capital and the physical infrastructure required to take great leaps, India lags behind its competitors, it noted.
“Unless the vast labor force is skilled, the benefits from the IR-4 will more than be offset by the massive labor displacement,” the article said.
India has made great strides in the digital space, implementing unique, large-scale projects driven by public digital infrastructure, particularly in payments infrastructure.