RBI’s Report on Currency and Finance (RCF) for the year 2021-22
The Reserve Bank of India has released the Report on Currency and Finance (RCF) for the year 2021-22 today. The theme of the Report is “Revive and Reconstruct” in the context of nurturing a durable recovery post-COVID and raising trend growth in the medium-term.
The highlights of the report include blueprint of reforms which revolves around seven wheels of economic progress viz., aggregate demand; aggregate supply; institutions, intermediaries and markets; macroeconomic stability and policy coordination; productivity and technological progress; structural change; and sustainability, a feasible range for medium-term steady state GDP growth of 6.5 – 8.5% in India, timely rebalancing of monetary and fiscal policies, reducing general government debt to below 66 per cent of GDP over the next five years, suggested structural reforms for enhancing access to litigation free low-cost land; raising the quality of labour through public expenditure on education and health and the Skill India Mission; scaling up R&D activities with an emphasis on innovation and technology; creating an enabling environment for start-ups and unicorns; rationalisation of subsidies that promote inefficiencies; and encouraging urban agglomerations by improving the housing and physical infrastructure and focus on transfer of technology and better trade terms for high quality imports in India’s ongoing and future free trade agreement (FTA) negotiations among others.
