In this article, we will discuss the RBI report on the Indian economy. It covers the topics related to Banking fraud, GDP, government policies, etc. First, let's discuss what is the RBI report on the Indian economy.
About RBI report on the economy
- This report is released annually by the Reserve Bank of India.
- It suggests measures to improve economic performance after analyzing the working and operations of the RBI.
The report of RBI on Banking fraud
- Economic frauds continue to weaken the Indian economy.
- The number of fraud cases reported by banks in the year 2018-19 is increased by 15% whereas the amount of money involved in fraud is increased by 73.8%.
- Some of these frauds are related to earlier years also.
- It takes an average of 22 months by banks to detect the fraud from its occurrence.
- The foreign banks managed to control the number of fraud cases but the amount rose sharply. Last year the foreign bank recorded 974 cases and the fraud amount was Rs 2560.9 million but this year the fraud amount is 9553 million in 762 cases.
The report of RBI on GDP
- RBI estimated that the recent slowdown in the economy is not due to the deep structural slowdown( due to problem government policies) but due to cyclical downswing(there is up and down in every country's economy).
- The RBI also reported that there are little structural issues in the land, labour, agricultural marketing that needs to be addressed.
- RBI has estimated that India's GDP to grow at 6.9% for this financial year. However, it is difficult to achieve as our GDP for the first quarter is just 5%.
- It also estimates that the range of GDP in the first half(6 months) will be 5.8% to 6.6% and in the second half, it will be 7.3% to 7.5%.
The policy of RBI:
- The RBI said that the nature of the slowdown will determine the policy response.
- If there will be a cyclical downswing then counter-cyclical actions will be taken in terms of monetary and fiscal policies.
- If there will be a structural slowdown it requires a deep-seated reform.
Other important points
- The crop production is affected by the delayed onset and skewed(flood in some areas and droughts in some) distribution of south-west monsoon.
- The investment provides the turning point to growth trajectory but the investment rate has fallen this time.
- The RBI is continuing to improve in ease of doing business to increase in sales growth of manufacturing companies.
Hope it helps.
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