Indian economy continues to forge ahead: Article in RBI Bulletin

The Indian economy bounced back strongly in the second quarter of fiscal 2021-22, with the gross domestic product surpassing its pre-pandemic levels, and inflation broadly aligning with the target, the article said.

The recovery is spearheaded by an uptick in private investment through November-December alongside a turnaround in bank credit offtake and high capex from the government sector. The employment situation has brightened as well, it said.

"The outlook remains upbeat, though concerns revolving around the spread of the new Omicron variant are surfacing," it said.

E-way bills generation has picked up again in December (up to December 12) posting a sharp month-on-month growth.

"The end of the festive season reflected in moderation in growth momentum of petroleum consumption, led by decline in diesel even as petrol consumption remained above pre pandemic levels and aviation turbine fuel recorded a steady pick-up in November 2021," the article said.

A host of incoming high frequency indicators are looking upbeat and consumer confidence is gradually returning. Aggregate demand conditions point to sustained recovery, albeit, with some signs of sequential moderation, it added.

Fibre2Fashion News Desk (DS)