Reserve Bank of India (RBI) has said that the economic situation in the country continues to improve and the budgetary proposals outlined by the finance minister have set the tone for a durable and broad-based economic revival.
In its monthly bulletin, which released today, the central bank said that the process of economic revival has begun as the nation emerges from the third wave of the COVID-19 pandemic.
"The union budget 2022-23 and the monetary policy announcement of February 10, 2022, have set the tone for a durable and broad-based revival," said the bulletin.
The renewed emphasis on public investment in the Budget through infrastructure development is expected to crowd-in private investment and strengthen job creation and demand in 2022-23, it said.
"Fundamental to the infrastructure boost is the GatiShakti National Master Plan, which aims to achieve inclusive growth through multi-modal connectivity and logistics efficiency," the report further said.
Observing that domestic macroeconomic conditions are striking a path that is diverging from global developments, the article said, "in India, the recovery in economic activity is gaining strength and traction as it emerges from the third wave.
It further said that today, the global economy stands at an inflection point. Inflation has become entrenched across economies, owing to a spike in commodity prices and persistence of supply chain bottlenecks.