Economy reviving, but renewed surge of Covid-19 infections poses risk: RBI

Apex bank's report notes lack of private investment; broader measures of liquidity reflect easing of monetary and financial conditions

India’s economic activity is gaining steam, but considerable uncertainty surrounds the outlook owing to the renewed surge in coronavirus infections, the Reserve Bank of India (RBI) said in its State of the Economy report on Monday.

“…the gathering strength of the recovery and its broadening ambit hold out optimism and the will to survive and revive,” said the report, part of the RBI bulletin. “All engines of aggregate demand are starting to fire; only private investment is missing in action and the time is apposite for it to come alive. Broader measures of liquidity reflect the easing of monetary and financial