The RBI concedes that the deceleration in the economy is attributable to combination of problems of insufficiency of aggregate demand, low public investments and international economic environment, says Dr. A S Harish, Senior Officer, The Vysya Bank Limited.
The Annual Report of the RBI presents a comprehensive review of state of the Indian economy and is an eagerly awaited document with reference to it's reading of future prospects.
RBI Report refers to a number of positives about the economy such as easing of inflation rate, strengthening of BOP situation and rising level of FOREX reserves, a fairly stable exchange rate of the rupee, a lower interest rate structure and the resilience of the economy in the face of global slowdown. The report further continuing on the positives stated that despite some stress, the industrial sector has successfully stood up to the pressures of competition. The New Economy sectors continue to enjoy competitive edge. The fast growing sectors such as software, knowledge-based industries, IT-enabled services, pharmacology, biotechnology and entertainment services carry the potential of generating increasing returns to scale. The issues, which dominated policy concerns includes the deceleration in the rate of real growth i.e., agriculture, industry and even services due to several weaknesses in the growth process in terms of declining rates of capital accumulation, infrastructure constraints etc. The RBI concedes that the deceleration in the economy is attributable to combination of problems of insufficiency of aggregate demand, low public investments and international economic environment.
|
