RBI 'cautiously optimistic' about economic recovery after Covid second wave

Second Covid wave shaved off Rs 2 trn from FY22 output, says central bank in 'State of the Economy' report in its June bulletin

The Reserve Bank of India (RBI) sees reasons to be “cautiously optimistic” as the second wave of the pandemic seems to have hit domestic demand, while other economic indicators show the economy is coming back on stream.

While the Indian economy continued to wrestle with the second wave of the pandemic, “cautious optimism is returning”, the RBI said in its “State of the Economy” report in its June bulletin.

“By (the) current assessment, the second wave’s toll is mainly in terms of the hit to domestic demand. On the brighter side, several aspects of aggregate supply conditions -- agriculture and