According to a report released by the Reserve Bank of India (RBI) on Friday i.e. 29th April, the Indian economy is likely to take more than 12 years to recover from the damage of Covid-19.
In the report by RBI on ‘Money and Finance for the Year 2021-22’, the RBI said that the structural changes brought about by the pandemic could potentially change the growth outlook in the medium term.
The report issued even said that continued thrust on capital expenditure by the government, promotion of digitization, e-commerce, start-ups, renewables and supply chain logistics can contribute to the growing opportunities for new investments.
RBI further said in the report that the pre-Covid situation growth rate would have been 6.6 per cent (CAGR for 2012-13 to 2019-20) and it would have been up to 7.1 per cent (CAGR for 2012-13 to 2016-17) excluding recessionary years.
The report said that India is looking at a real growth rate of (-)6.6 per cent for 2020-21, 8.9 per cent for 2021-22 and 7.2 per cent for 2022-23 and 7.5 per cent beyond that. It is expected to recover from the damage caused by Covid 19 in 2034-35.
The production loss for different years for 2020-21, 2021-22 and 2022-23 is estimated at Rs 19.1 lakh crore, Rs 17.1 lakh crore and Rs 16.4 lakh crore respectively.
The Reserve Bank of India (RBI) on Friday released the report on currency and finance for the years 2021-22. The theme of the report released by RBI is “Revive and Reconstruct”, in the context of sustainable recovery from COVID and boosting growth in the medium term.
The blueprint for reforms that are proposed in the report revolves around the seven wheels of economic progress – aggregate supply, institutions, intermediaries and markets, macroeconomic stability and policy coordination, productivity and technological progress, structural change and sustainability.