RBI released its annual report.

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New Delhi:

The Central Reserve Bank has released its annual report on Friday.

In this report, the central bank has said that in the year 2022, there may be a lot of impact on the global recovery, however, despite many global conditions, India can be able to take its recovery safely, while in macro-economic conditions in India. Improvement can also be seen.

The report said that the risks are currently substantial, with raw material shortages and global supply chains being adversely affected by the Russia-Ukraine war even before the effects of the Kovid pandemic have been recovered.

The re-emerging epidemic in many countries in front of the world, slowdown in China and countries lagging behind on climate agreements are still a matter of concern.

Many things have also been said about India's prospects in the report.

Important points of RBI report

  • In the report of the Central Bank, it has been expressed that in the midst of rising inflation around the world, it is a big challenge for the bank how to check the rising inflation without hurting the economic growth.

    RBI said that while economic recovery should have been given priority, at the same time due to rising inflation, strict monetary policy has to be adopted.

  • The RBI said that the impact of the Ukraine-Russia war is being felt by countries around the world and the global economy.

    Rising food and oil prices, reduction in the supply of essential commodities are affecting the least vulnerable countries more.

  • The impact of the loss in human capital and investment on emerging markets and developing economies will be long and could keep economic activity and employment prospects below pre-pandemic trends by 2023. 

  • Regarding inflation, RBI said that three-fourths of the Consumer Price Index is under threat.

    The gap between trade and current account deficit widened due to increase in international prices of raw materials, metals and fertilisers.

    The bank said that amid the uncertainties, the inflationary stance will mainly depend on the changing geopolitical conditions.

  • The central bank said that policy interventions on the supply side such as ban on wheat exports, abolition of customs duty on import of cotton, reduction of cess on vehicle fuels, increase in export duty on certain product products will provide some balance.

  • In the report, RBI has said that the prospects of the near future are still very uncertain, changing rapidly, so nothing can be said right now.

  • The RBI has strongly supported structural reforms, saying that these reforms are necessary for inclusive, sustainable and balanced growth and to deal with the after-effects of the global pandemic coronavirus.

    The RBI in the report also emphasized that the path of future growth will be determined by adjusting monetary policy to remove supply side bottlenecks, reduce inflation and boost capital expenditure.

  • The 'Evaluation and Prospects' chapter of the report said, "Structural reforms to improve India's medium-term growth prospects are critical for sustainable, balanced and inclusive growth, especially in the wake of the post-global pandemic impacts on employee skills." It is necessary to help them develop and teach them to use new technologies to increase production.