The Coronavirus crisis is a long battle being fought by all the nations across the world. RBI’s monetary policy report of Oct 2020 has provided a detailed outlook as to where India stands now. Since the month of April, the overall economic structure of the country has collapsed and is still far from a firm recovery. This quarter saw record low GDP growth, reduction in demand at a scale never imagined, highest of all unemployment rates and many sectors facing severe financial losses.
The trend saw a dip from the month of September when there was a gradual increase in demand. Gold Prices were high because of the safety net it offers in such tough times. Food prices have seen a growth in inflation in the emerging markets economies (EMEs). Fear of a second wave and still a bit far from getting a vaccine is still making it difficult to start a complete revival process.
Amidst this, Global Public debt, as projected by the International Monetary Fund will loom around 100 percent of the GDP. April-June 2020 saw the Real GDP fall by 23.9 percent year-on-year. Private consumption and investments recorded a sharp fall as government spending came to the rescue.
Source : RBI Monetary Policy Report
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