On Tuesday, the Reserve Bank of India (1) addressed a solid case for deep-seated and wide-ranging reforms to regain losses and restore the track of sustainable economic growth. As per RBI, the shape of the future will be heavily unanticipated upon the enlarging intensity, spread, and duration of COVID-19 and the invasive vaccine’s discovery.
RBI further added that the same in its assessment and prospects forms part of the central bank’s Annual Report for the year 2019-20. The Reserve Bank of India (RBI) stated that the world would not be the same. It could emanate post-COVID-19 and calls for deep-seated and wide-ranging reforms for sustainable growth.
The COVID-19 will foist deep deformation on the world economy. The pandemic is already cautioning that India’s potential output may undergo a structural downshift. Following this, the RBI said that Post COVID-19, the profound sense is that the world will not be the same again. The RBI is also predicting that a new normal could emerge.
RBI Foresees Reformation in All Major Sectors
RBI noted, in a post-pandemic scenario, deep-seated and wide-ranging structural reforms in factor and product markets, legal architecture, the financial sector, and more. The global competitiveness would be needed to retrieve probable output losses and return the economy to a path of sustainable and robust growth with macroeconomic and financial stability.
It also pointed out that as in the rest of the world, India’s potential output can undergo a structural downshift as the recovery driven by stimulus and regulatory subsiding gets unwound in a post-pandemic scenario. The RBI has recently released its annual report (2) where there are several chapter included regarding the economy of India. It includes review and prospects of Indian economy along with various other topics like monetary, inflation, currency management, and more.
Furthermore, RBI also added that this recovery is likely to be different as the global financial crisis occurred after years of vigorous growth with macroeconomic stability; by contrast, COVID-19 has hit the economy after consecutive zones of the slowdown.