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LATEST NEWS UPDATES | Contact intensive firms to lead India’s recovery: RBI

Contact intensive firms to lead India’s recovery: RBI

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published Published on Oct 18, 2022   modified Modified on Oct 18, 2022

-The Telegraph

Document says country is poised to consolidate and accelerate its revival over the rest of the year

A Reserve Bank of India (RBI) document on Monday said contact-intensive sectors will lead India’s recovery.

Besides, elevated inflation will cool from September ``albeit stubbornly’’ on the back of easing momentum and favourable base effects, according to a paper on the state of the economy co-authored by deputy governor Michael Patra, that is part of the October bulletin of the RBI released on Monday. The views expressed in the article are those of the authors and do not represent the views of the RBI.

The paper said India is poised to consolidate and accelerate its recovery over the rest of the year. The momentum of real GDP growth is expected to "shed the drag embedded in the NSO’s estimates for the first quarter of 2022-23’’ and move into positive territory in the remaining quarters, including on a seasonally adjusted basis.

India’s real GDP growth stood at 13.5 per cent in AprilJune 2022-23 which was lower than the RBI’s projection of 16.2 per cent growth.

The paper said though the growth story may not be evident in year-on-year rates because of unfavourable base effects, the sequential rates will reflect the underlying recovery.

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The Telegraph, 18 October, 2022, https://www.telegraphindia.com/business/contact-intensive-firms-to-lead-indias-recovery-rbi/cid/1892679


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