‘Manufacturing activity gradually turning around’: RBI
Spurred by comfortable liquidity conditions, financial conditions stay benign and supportive of the recovery, said the central bank
The Reserve Bank of India has signaled a positive growth in the manufacturing activity in India as the country’s vaccination drive has gained momentum and Covid cases are gradually dropping.
Reaffirming that the economy is gaining traction again, the central bank in its State of the Economy report said, “The course of the economy over the month-and-a-half gone by has been altered by the slow retreat of the second Covid wave.”
Aggregate demand conditions are buoyed by the release of pent-up demand post unlock, while the supply situation is improving with monsoon catching up to its normal levels and sowing activity gaining pace, RBI said in the August 2021 edition of the report.
Spurred by comfortable liquidity conditions, financial conditions stay benign and supportive of the recovery, it said.
“Aggregate demand conditions are buoyed by pent-up demand released by unlocks and vaccination. E-way bill collections rose to their highest level in the last four months,” the report said.
As per the report, yet another sign of revitalization of the economy is the manner in which Corporate India has faced the second wave of the pandemic relative to the first one.
“1,427 listed non-financial companies have declared their earnings results so far and they account for 86.8 per cent of the market capitalization of all listed non financial companies in India,” the report said.
So far, inflation is on track to staying within the trajectory envisaged and it is likely to stabilise during the rest of the year, it said.