RBI Bulletin - February 2022 - ఆర్బిఐ - Reserve Bank of India
RBI Bulletin - February 2022
The Reserve Bank of India today released the February 2022 issue of its monthly Bulletin. The Bulletin includes Monetary Policy Statement, February 10, 2022; one speech; four articles; and current statistics. The four articles are: I. State of the Economy; II. Zombies and the Process of Creative Destruction; III. Bad Banks as Good Samaritans: Lessons from Cross-Country Experience for India; and IV. Impact of COVID-19 on Sentiments of Indian Manufacturers. I. State of the Economy Domestic macroeconomic conditions are striking a path that is diverging from global developments. In India, the recovery in economic activity is gaining strength and traction as it emerges from the third wave. Both manufacturing and services remain in expansion with optimism on demand parameters and uptick in consumer and business confidence. As businesses return to a new normal, the job landscape is expected to improve. Farm sector conditions remain robust albeit with some signs of rural demand slackening. Even as monetary policy remains accommodative, global spillovers have led to a tightening of financial conditions. II. Zombies and the Process of Creative Destruction This article examines how zombie firms (or perpetually loss-making firms) respond to counter-cyclical monetary policy in India. It also explores whether monetary policy hinders the process of creative destruction by allocating credit flows to zombie firms during periods of economic slowdown. Highlights:
III. Bad Banks as Good Samaritans: Lessons from Cross-Country Experience for India The article analyses establishment of the National Asset Reconstruction Company Ltd. (NARCL) in India against the backdrop of cross-country practices to understand the characteristics that helped in their success. Highlights:
IV. Impact of COVID-19 on Sentiments of Indian Manufacturers As forward-looking surveys play an important role in supporting policy decisions, major economies have used these surveys to capture the outlook of the enterprises in the aftermath of the pandemic. This article encapsulates the evolution of sentiments of Indian manufacturers during the pandemic as captured through the quarterly Industrial Outlook Survey (IOS) conducted during 2019-21 and gauge the expected recovery process in the manufacturing sector. Highlights:
(Yogesh Dayal) Press Release: 2021-2022/1729 |