Revival of private demand key for India’s economic recovery: RBI

In its annual report, the Reserve Bank of India said the country’s growth prospects now essentially depend on how fast India can arrest its second wave of COVID-19 infections.

India’s economy has not moderated as much as it did during the first wave of the coronavirus, but uncertainties may act as a short-term deterrent and private demand will be key to revival, the Reserve Bank of India said on Thursday. In its annual report, the central bank said the country’s growth prospects now essentially depend on how fast India can arrest its second wave of COVID-19 infections. “For a self-sustaining GDP growth trajectory post-COVID-19, a durable revival in private consumption and investment demand together would be critical as they account for around 85 per cent of GDP,” RBI said.