Despite Omicron, India's Economic Activity Remains Strong: RBI Report
NDTV
Expectations that Omicron may turn out to be more of a flash flood than a wave have brightened near-term prospects, RBI has said in its bulletin
India's overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit and most importantly, on expectations that Omicron may turn out to be a "flash flood rather than a wave", have further brightened the prospects, Reserve Bank of India (RBI) has noted in its bulletin for January 2022.
"On the vaccination front, India has made rapid strides. On the Omicron variant, the recent data from the UK and South Africa suggest that such infections are 66 to 80 per cent less severe, with a lower need for hospitalisation," the article on the state of economy published in the RBI Bulletin said.
Amidst upbeat consumer and business confidence and an uptick in bank credit, aggregate demand conditions stay resilient while on the supply front, rabi sowing has exceeded last year's level and the normal acreage, it noted.
Noting that manufacturing and several categories of services remain in expansion, the article said, adding that "overall economic activity in India remains strong, with upbeat consumer and business confidence and upticks in several incoming high frequency indicators".
