The Reserve Bank of India (RBI) has taken whatever measures seem fit to give the Indian economy some boost.
In its May bulletin, the RBI said that the second wave of coronavirus has hit demand harder. It had also had disrupted the supply side.
“The biggest toll of the second wave is in terms of a demand shock – loss of mobility, discretionary spending and employment, besides inventory accumulation, while the aggregate supply is less impacted,” the bulletin said.
However, in the April bulletin, RBI sounded quite positive despite devastating consequences of the pandemic.
Drawing attention towards how India remains the world’s fastest growing economy in 2021 and 2022. Even during the increase in unemployment and growing stress on balance sheets, it saw positive trajectory.
But for the current month, RBI has listed all the parts of the economy impacted by the second wave. They speak about it in varying degrees to form a U-shaped curve.
It says that the two shoulders of the U denote agriculture and information technology. While the slopes show different segments, from automated manufacturing to services that can be remotely offered that have seen different levels of impact.