Prospects brightening for economy: RBI bulletin

Prospects are brightening for the economy achieving escape velocity from the Covid-19 pandemic as the second wave wanes, as per an article on the state of the economy, published in Reserve Bank of India (RBI)’s September bulletin. The paper mentioned that the preparedness for the future remains on war-alert status. Commenting on the state of economy, it stated that aggregate demand is gaining firmer ground, while on the supply side, IIP and core industries mirror improvement in industrial activity and services sector indicators point towards sustained recovery. The central bank also noted that the inflation trajectory is shifting down more favourably than anticipated.