Mumbai: price stability This is a necessary precondition for strong and sustainable growth, an RBI report said on Thursday while stressing on a series of structural reforms to nurture a sustainable recovery post-Covid.
“A viable range for medium-term steady-state GDP growth in India is 6.5 – 8.5 per cent, in line with the reforms blueprint,” said the report on Currency and Finance (RCF) for 2021-22.
The theme of the report is “Revitalize and Rebuild”, in the context of nurturing a sustainable recovery post-COVID and boosting growth in the medium term.
Reserve BankHowever, he added that the report reflects the views of the contributors and not the views of the central bank.
“Timely rebalancing of monetary and fiscal policies may be the first step in this journey… Price stability is an essential precondition for strong and sustainable growth,” it said.
According to the report prepared by officials of RBI’s Department of Economic and Policy Research (DEPR), reducing general government debt to below 66 per cent of GDP over the next five years is crucial to secure India’s medium-term growth prospects.
Structural reforms suggested by the report include increasing access to litigation-free low-cost land; Enhancing the quality of labor through education and public expenditure on Health and Skill India Mission; and enhance R&D activities with emphasis on innovation and technology.
It has also made a case for creating an enabling environment for startups and unicorns; Rationalization of subsidies promoting disabilities; and encourage urban agglomerations by improving housing and physical infrastructure.
The authors noted that Industrial Revolution 4.0 and the committed transition to a net-zero emissions target guarantee a policy ecosystem that facilitates the provision of adequate access to risk capital to do business and a globally competitive environment.
He said, “The ongoing and future Free Trade Agreement (FTA) negotiations in India will focus on transfer of technology for high quality imports from partner countries and better trade terms to improve the outlook for exports and domestic manufacturing. could.”
The report further states that a comprehensive plan is necessary to revive the rural economy.
It said that organizing farmers’ clubs or agricultural cooperatives is a possible solution to correct the price imbalance by bridging the gap between farm gate prices and retail prices.
“In this regard, development of a modern supply chain infrastructure needs priority attention. There is a need to adopt a viable ‘whole business’ approach covering all aspects of farming to break the dependence of farmers on moneylenders. ”
It said removing structural constraints is central to reviving and rebuilding the Indian economy from the ravages of the pandemic.
In the preface to the report, RBI Governor Shaktikanta Daso The resilience of some sectors such as agriculture and allied activities, information technology services, exports, digitization and renewable energy during the COVID-19 crisis gives us confidence that the Indian economy can make a strong comeback, said Mr.
“What adds to this belief is the way some other sectors have used this crisis to rebuild and reconfigure,” he said.
These sectors would include the organized corporate sector; financial sector; start-up; And more recently, the manufacturing sector.
The governor said that even around us, the world is changing through changing supply chains, geopolitical configurations and policy strategies to new global realities, even including a rethinking of globalization and financial integration.
“A viable range for medium-term steady-state GDP growth in India is 6.5 – 8.5 per cent, in line with the reforms blueprint,” said the report on Currency and Finance (RCF) for 2021-22.
The theme of the report is “Revitalize and Rebuild”, in the context of nurturing a sustainable recovery post-COVID and boosting growth in the medium term.
Reserve BankHowever, he added that the report reflects the views of the contributors and not the views of the central bank.
“Timely rebalancing of monetary and fiscal policies may be the first step in this journey… Price stability is an essential precondition for strong and sustainable growth,” it said.
According to the report prepared by officials of RBI’s Department of Economic and Policy Research (DEPR), reducing general government debt to below 66 per cent of GDP over the next five years is crucial to secure India’s medium-term growth prospects.
Structural reforms suggested by the report include increasing access to litigation-free low-cost land; Enhancing the quality of labor through education and public expenditure on Health and Skill India Mission; and enhance R&D activities with emphasis on innovation and technology.
It has also made a case for creating an enabling environment for startups and unicorns; Rationalization of subsidies promoting disabilities; and encourage urban agglomerations by improving housing and physical infrastructure.
The authors noted that Industrial Revolution 4.0 and the committed transition to a net-zero emissions target guarantee a policy ecosystem that facilitates the provision of adequate access to risk capital to do business and a globally competitive environment.
He said, “The ongoing and future Free Trade Agreement (FTA) negotiations in India will focus on transfer of technology for high quality imports from partner countries and better trade terms to improve the outlook for exports and domestic manufacturing. could.”
The report further states that a comprehensive plan is necessary to revive the rural economy.
It said that organizing farmers’ clubs or agricultural cooperatives is a possible solution to correct the price imbalance by bridging the gap between farm gate prices and retail prices.
“In this regard, development of a modern supply chain infrastructure needs priority attention. There is a need to adopt a viable ‘whole business’ approach covering all aspects of farming to break the dependence of farmers on moneylenders. ”
It said removing structural constraints is central to reviving and rebuilding the Indian economy from the ravages of the pandemic.
In the preface to the report, RBI Governor Shaktikanta Daso The resilience of some sectors such as agriculture and allied activities, information technology services, exports, digitization and renewable energy during the COVID-19 crisis gives us confidence that the Indian economy can make a strong comeback, said Mr.
“What adds to this belief is the way some other sectors have used this crisis to rebuild and reconfigure,” he said.
These sectors would include the organized corporate sector; financial sector; start-up; And more recently, the manufacturing sector.
The governor said that even around us, the world is changing through changing supply chains, geopolitical configurations and policy strategies to new global realities, even including a rethinking of globalization and financial integration.