RBI annual report: Policy resolve gives confidence despite macro challenges

Against the backdrop a severe global pandemic, the RBI’s Annual Report, released Tuesday, remains an important document that laid down the central bank’s assessment of the Indian economy and the various policy initiatives. Maintaining a long tradition, the report stands out for its vast coverage, superior analysis, and key recommendations for future policy priorities. This article attempts to briefly discuss a few such issues; admittedly, this set of points is far from being an exhaustive one.

Growth markedly weak; rural economy in better shape

As regards near term growth, the report explained that after a quick uptick in May and June, activity