India’s macro-economic situation has improved despite potential risks to global growth from a slowdown in commodity prices, the central bank said on Thursday. India (RBI) said in its monthly report 2021-22. The Gross Domestic Product (GDP) exceeded its pre-epidemic rate (2019-20) by 1.5% and employment gains power by 2022-23 by now as it is measured from higher levels references add. India’s current crop yield is showing improvement in its long-term growth prospects and rising inflation expectations, he said in the future”adds the report.
The RBI said the first impact of food and fuel price shocks on inflation is outside its range. Food and fuel prices comprise 60% of the Indian CPI, but the rising pressure on food prices is now coming from foreign sources such as the Ukrainian war. However, the RBI’s inefficiency could promote the perception that inflation is out of control, he added. The RBI this month raised prices by 50 points after rising 40 bps in May. “The RBI’s actions will create inflation other than those related to food and fuel or so-called core inflation, and will reduce inflation,” the statement said.
In its report, the RBI also highlighted the financial difficulties of the Indian provinces due to tax cuts and increased funding burden as the country emerges from the coronavirus epidemic. The pressure analysis shows that the financial situation of the heavily indebted regions is expected to worsen in the coming years” said by RBI.
