India's economic recovery now taking hold-RBI Governor Das

Reserve Bank of India (RBI) governor Shaktikanta Das said that the country's economic recovery is now finally taking hold after a tumultuous period marked by the coronavirus disease (Covid-19) pandemic, as currently suggested by numerous “high-frequency” indicators. “There are signs that consumer demand, triggered by the festive season, is making a strong comeback. This should encourage firms to expand capacity and boost employment and investment amid congenial financial conditions,” Das said.

Das said that the recent cut in excise duty on petrol and diesel by the Centre and in the value-added tax (VAT) by the several state governments will augment the purchasing power of the people, which, in turn, will create space for additional consumption. He also said that India, with a scale of vaccination among the highest in the world, is poised to lead the fight against Covid-19. In an article published in the RBI Bulletin of November 2021,he had also pointed out that domestically, there have been several positives on the pandemic front, in terms of reduced infections and faster vaccinations. This sets the Indian economy, 

The Indian equity markets scaled record highs multiple times during the first half of October 2021, buoyed by strengthening signs of recovery in economic activity, a strong demand outlook ahead of the festive season, and the Reserve Bank's announcement of the status quo in its policy repo rate alongside continued accommodative stance of monetary policy.