Aggregate demand is gaining firmer ground, while on the supply side, index of industrial production and core industries mirror improvement in industrial activity and services sector indicators point towards sustained recovery, the bulletin said.

"As pandemic scars heal and supply conditions are restored with productivity gains, a sustained easing of core inflation can be expected, which will reinforce the growth-supportive stance of monetary policy," the bulletin said.

The investment intentions of the Indian private corporates remained sluggish as reflected by lower numbers of new announcements and completions of projects, an article in the bulletin said. The pandemic uncertainties adversely affected appetite for new projects during 2020-21 and posed impediments to timely completion of pipeline projects.

In 2021-22, demand for new projects would shape the private investment outlook, along with the progress of the projects already in the pipeline, it said.

Fibre2Fashion News Desk (DS)