It will take 12 years to cover the loss caused by Corona to the economy, the estimate given in the RBI report

Corona to India’s economycovidIt may take more than a decade to get out of the damage caused by it. reserve Bank (RBIAccording to a report of ), the economy of India (Economy) Will be able to compensate for the loss caused by Kovid only till the financial year 2035. Along with this, it has also been estimated in the report that due to the epidemic, India has lost an output of about Rs 50 lakh crore in the last 3 years. According to the report of the Reserve Bank, India’s economy will be able to compensate for the loss caused during the epidemic only by 2034-35. According to the report, the economy will get Rs 19.1 lakh crore in 2020-21. There has been a loss of output equivalent to Rs 17.1 lakh crore in 2021-22 and Rs 16.4 lakh crore in 2022-23. And it will take 10-12 years to recover this loss.

Reform and price stability necessary for stable growth

At the same time, the report said that structural reforms and price stability are very important for the country to achieve a sustainable economic growth rate of 6.5-8.5 percent in the medium term. The RBI’s report on currency and finance for the financial year 2021-22 also said that maintaining a periodic balance between monetary and fiscal policy should be the first step towards stable growth. Several structural reforms have been suggested in this report. This includes suggestions for reducing litigation, increasing public spending on education and health, and improving labor quality through the Skill India mission, and increasing research-development activities focused on innovation and technology. In addition, the report has suggested a favorable trend for startups and unicorns. It has also been suggested to create an environment, rationalize subsidies that promote disabilities, and encourage urban communities by improving housing and physical infrastructure.

slow recovery

According to the report, ‘Economic activities have barely reached the pre-Covid level even after two years. India’s economic recovery is also facing deep structural challenges apart from the aftershocks of the pandemic. Meanwhile, the war between Russia and Ukraine has also slowed the pace of economic recovery. Commodity prices rising due to war, weakening global economic outlook and dire global financial conditions have also created difficulties. Against this backdrop, India’s medium-term growth outlook depends heavily on policy measures to address structural bottlenecks and take advantage of new growth opportunities, according to the report. The report says that it is viable for India to maintain steady growth of 6.6-8.5 per cent in the medium term. For this, there will be a balance between monetary and fiscal policies from time to time. Apart from this, stability in prices will also be an important aspect.