<p class="title">Structural reforms and price stability are the pre-requisites for achieving a medium-term steady economic growth of 6.5-8.5 per cent, according to a RBI report.</p>.<p class="bodytext">The Report on Currency and Finance (RCF) for the year 2021-22 also emphasised that timely re-balancing of monetary and fiscal policy should be the first step in the journey towards sustained growth.</p>.<p class="bodytext">RBI said the report reflects the views of the contributors and not of the central bank.</p>.<p class="bodytext">The report has suggested structural reforms, including enhancing access to litigation-free low-cost land, raising the quality of labour through public expenditure on education and health and Skill India Mission, and scaling up R&D activities with an emphasis on innovation and technology.</p>.<p class="bodytext">Further, the report recommended creating an enabling environment for startups and unicorns, rationalisation of subsidies that promote inefficiencies and encouraging urban agglomerations by improving the housing and physical infrastructure.</p>.<p class="bodytext">India suffered among the biggest pandemic-induced losses in the world in terms of output, lives, and livelihoods, which may take years to recover, it added.</p>.<p class="bodytext">"Economic activity has barely recovered to pre-COVID levels even after two years. India's economic rebound also faces difficult challenges from the legacy of deep-rooted structural bottlenecks as well as the scars of the pandemic," it said.</p>.<p class="bodytext">As per the report, the Russia-Ukraine conflict has also dampened the momentum of recovery, with its impact transmitting through record-high commodity prices, weaker global growth outlook, and tighter global financial conditions.</p>.<p class="bodytext">Concerns surrounding de-globalisation impacting future trade, capital flows and supply chains have amplified uncertainties for the business environment, it added.</p>.<p class="bodytext">Against this backdrop, the report said India's medium-term growth outlook hinges critically on policy measures to address structural bottlenecks and harness emerging new growth opportunities.</p>.<p class="bodytext">"A feasible range for medium-term steady-state GDP growth in India works out to 6.5–8.5 per cent, consistent with the blueprint of reforms," it said, adding that timely re-balancing of monetary and fiscal policies will likely be the first step in this journey.</p>.<p class="bodytext">Also, price stability is a necessary precondition for strong and sustainable growth, it said. </p>
<p class="title">Structural reforms and price stability are the pre-requisites for achieving a medium-term steady economic growth of 6.5-8.5 per cent, according to a RBI report.</p>.<p class="bodytext">The Report on Currency and Finance (RCF) for the year 2021-22 also emphasised that timely re-balancing of monetary and fiscal policy should be the first step in the journey towards sustained growth.</p>.<p class="bodytext">RBI said the report reflects the views of the contributors and not of the central bank.</p>.<p class="bodytext">The report has suggested structural reforms, including enhancing access to litigation-free low-cost land, raising the quality of labour through public expenditure on education and health and Skill India Mission, and scaling up R&D activities with an emphasis on innovation and technology.</p>.<p class="bodytext">Further, the report recommended creating an enabling environment for startups and unicorns, rationalisation of subsidies that promote inefficiencies and encouraging urban agglomerations by improving the housing and physical infrastructure.</p>.<p class="bodytext">India suffered among the biggest pandemic-induced losses in the world in terms of output, lives, and livelihoods, which may take years to recover, it added.</p>.<p class="bodytext">"Economic activity has barely recovered to pre-COVID levels even after two years. India's economic rebound also faces difficult challenges from the legacy of deep-rooted structural bottlenecks as well as the scars of the pandemic," it said.</p>.<p class="bodytext">As per the report, the Russia-Ukraine conflict has also dampened the momentum of recovery, with its impact transmitting through record-high commodity prices, weaker global growth outlook, and tighter global financial conditions.</p>.<p class="bodytext">Concerns surrounding de-globalisation impacting future trade, capital flows and supply chains have amplified uncertainties for the business environment, it added.</p>.<p class="bodytext">Against this backdrop, the report said India's medium-term growth outlook hinges critically on policy measures to address structural bottlenecks and harness emerging new growth opportunities.</p>.<p class="bodytext">"A feasible range for medium-term steady-state GDP growth in India works out to 6.5–8.5 per cent, consistent with the blueprint of reforms," it said, adding that timely re-balancing of monetary and fiscal policies will likely be the first step in this journey.</p>.<p class="bodytext">Also, price stability is a necessary precondition for strong and sustainable growth, it said. </p>