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16/11/2021 03:55pm

Indian economy to be back in list of fastest growing economies: RBI

image Indian economy to be back in list of fastest growing economies: RBI

New Delhi, 16 Nov (KNN) The Reserve Bank of India (RBI) said that there has been an improvement in aggregate demand in the economy in its ‘state of the economy’ report released on Monday.

Owing to the current account surplus and low interest rates, the Central Bank has reported a steady recovery and growth rate for Indian economy.

It pressed on factors such rapidly improving mobility, retrieval of job market and overall economic activity is building strongly.

Further it explained that India’s economy is taking a different route from the global situation.

With the gradual uptick in confidence, mobility indicators have edged up, “the job market is exhibiting signs of ebullience on the back of an uptick in business optimism and faster pace of vaccination,” said the report.

In view of exports, a recovery mode is stated, while collections under the goods and services tax (GST) have been termed robust.

Manufacturing is showing improvement in overall operating conditions, while services are in strong expansion mode, it said.

Nevertheless, the domestic outlook “remains overcast by the future course of pandemic and global supply disruptions,” even as the dip in fresh infections and rapid progress in inoculations have been encouraging.

The release of the GST compensation cess of INR 44,000 crore will further improve the states’ revenue position. With this, the government has transferred the entire INR 1.59 trillion on back to back loan basis to states without resorting to additional borrowing from the market.

The total GST compensation to states is expected to be around '2.59 trillion in 2021-22, the RBI said.

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