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On April 29 ReseOn April 29 Reserve Bank of India (RBI) report said price stability is a necessary condition for strong and sustainable growth, along with a seven-point reform plan.
The focus on price stability is important given that shortly thereafter the Monetary Policy Committee (MPC) highlighted the threats of high inflation in the economy and heard rate hikes were possible at its last policy meeting.
According to the Money and Finance (RCF) report for 2021-22, the reforms must focus on aspects such as aggregate demand, aggregate supply; institutions, intermediaries, and markets; macroeconomic stability, and policy coordination.
Furthermore, the report notes that an achievable range for medium-term GDP growth in India is 6.5 to 8.5 percent, in line with the reform plan.
To achieve sustainable growth, a timely rebalancing of monetary and fiscal policies is likely to be the first step on this path, the RBI report said, adding that it is important to reduce public debt to less than 66% of GDP in the next five years. years to secure India’s medium-term debt. long-term growth prospects.
The report proposed structural reforms, including improving access to low-cost land without going to court; the quality of the workforce through increased public spending on education and health, and the mission of Skill India.
In addition, it will be critical to intensify research and development activities with a focus on innovation and technology, create an enabling environment for start-ups and unicorns, and streamline subsidies that encourage inefficiencies and urban agglomerations by improving housing and the physical promotion of infrastructure. says the report.
“Industrial Revolution 4.0 and the committed transition to net-zero emissions warrant a policy ecosystem that facilitates the provision of adequate access to venture capital and a globally competitive environment for doing business,” the report states.
In the report’s foreword, RBI Governor Shakkanta Das said the challenge for lawmakers is to create a virtuous circle of increased opportunities for entrepreneurs.
According to the report, public banks must reduce their dependence on the government for recapitalization. Strengthening corporate governance standards in the banking sector is a priority area, he said.
“It is not enough to stabilize the economy and bring it out of the depths to which it sank during the first wave of infections and the teeth of subsequent waves,” the governor said.
The economy should create a climate where entrepreneurs can innovate and invest, Das said, adding that companies should be able to attract more capital and technology.
Furthermore, the resilience of certain sectors such as agriculture and related activities, information technology services, exports, digitization and renewable energy during the COVID-19 crisis gives confidence that the Indian economy can recover. hard, Das said.
rve Bank of India (RBI) report said price stability is a necessary condition for strong and sustainable growth, along with a seven-point reform plan.
The focus on price stability is important given that shortly thereafter the Monetary Policy Committee (MPC) highlighted the threats of high inflation in the economy and heard rate hikes were possible at its last policy meeting.
According to the Money and Finance (RCF) report for 2021-22, the reforms must focus on aspects such as aggregate demand, aggregate supply; institutions, intermediaries and markets; macroeconomic stability and policy coordination.
Furthermore, the report notes that an achievable range for medium-term GDP growth in India is 6.5 to 8.5 percent, in line with the reform plan.
To achieve sustainable growth, a timely rebalancing of monetary and fiscal policies is likely to be the first step on this path, the RBI report said, adding that it is important to reduce public debt to less than 66% of GDP in the next five years. years to secure India’s medium-term debt. long-term growth prospects.
The report proposed structural reforms, including improving access to low-cost land without going to court; the quality of the workforce through increased public spending on education and health, and the mission of Skill India.
In addition, it will be critical to intensify research and development activities with a focus on innovation and technology, create an enabling environment for start-ups and unicorns, streamline subsidies that encourage inefficiencies and urban agglomerations by improving housing and the physical promotion of infrastructure. says the report.
“Industrial Revolution 4.0 and the committed transition to net-zero emissions warrant a policy ecosystem that facilitates the provision of adequate access to venture capital and a globally competitive environment for doing business,” the report states.
In the report’s foreword, RBI Governor Shakkanta Das said the challenge for lawmakers is to create a virtuous circle of increased opportunities for entrepreneurs.
According to the report, public banks must reduce their dependence on the government for recapitalization. Strengthening corporate governance standards in the banking sector is a priority area, he said.
“It is not enough to stabilize the economy and bring it out of the depths to which it sank during the first wave of infections and the teeth of subsequent waves,” the governor said.
The economy should create a climate where entrepreneurs can innovate and invest, Das said, adding that companies should be able to attract more capital and technology.
Furthermore, the resilience of certain sectors such as agriculture and related activities, information technology services, exports, digitization, and renewable energy during the COVID-19 crisis gives confidence that the Indian economy can recover. hard, Das said.
