RBI's action on the economic recovery of the country in the post pandemic era | RBI Grade B Phase 1 Preparation - Bank Exams PDF Download

RBI's action on the economic recovery of the country in the post pandemic era

The RBI has stated that policy support is needed to bolster recovery in Asia’s third largest economy from a coronavirus induced slowdown even when demand is seeing a surge. The pandemic has affected the poor and the vulnerable more in emerging and developing countries, which makes it a priority to ensure livable and sustainable growth in the post-pandemic future. More importantly, macroeconomic fundamentals should be met through medium-term investments, stable financial systems, and structural reforms in order to achieve sustainable growth.  To achieve this goal, significant investments in education, innovation, healthcare, and physical and digital infrastructure will be needed. Additionally, it is crucial to accelerate additional labor market and product market reforms that promote competition and dynamism in order to take advantage of the opportunities created by the pandemic.
The implementation of a fiscal package across sectors will not only lift the economy out of the woods, but also address some of the existing anomalies in income and wealth distribution. Even though short-term losses in international trade would result from that, encouraging an independent Indian economy can do wonders!  Promoting a self- reliant Indian economy can do wonders, though international trade would suffer due to that temporarily! The following actions, including making PDS available to everyone for a year, extending the employment guarantee to urban areas, providing DBT to the affected families, swiftly reducing input taxes for specific industries, and increasing investment in public and social infrastructure, may be able to help. If the goal of getting the economy back on track is something that is seriously on the table, then the scope of the work that needs to be done needs to be very clearly understood.