RBI tells it may take 12 years for the Indian economy to Recover from COVID-19 losses

According to a report released by the Reserve Bank of India on Friday, the economy of India might take about 12 years to recover from the COVID-19 losses. RBI In its report on 'currency and finance for the year 2021-22', stated that the pandemic is a watershed moment and the current structural changes accelerated by the pandemic can potentially change the growth trajectory in the medium-term. The Report stated, "Sustained thrust on capital expenditure by the government, push to digitalisation and growing opportunities for new investment in areas like e-commerce, startups, renewables and supply chain logistics could in turn, contribute to step up the trend growth while closing the formal-informal gap in the economy.”

In the report, the Central Bank of India further told that the pre pandemic trend growth rate works out to 6.6 percent (CAGR for 2012-13 to 2019-20) and excluding the slowdown years it works out to 7.1 percent.  (CAGR for 2012-13 to 2016-17). The Report by RBI further states, "Taking the actual growth rate of (-) 6.6 per cent for 2020-21, 8.9 per cent for 2021-22 and assuming growth rate of 7.2 per cent for 2022-23, and 7.5 per cent beyond that, India is expected to overcome COVID-19 losses in 2034-35.”