The Reserve Bank reports that the country's current recession is of a cyclical nature

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Mumbai, Ta. August 29, 2019, Thursday

India's current recession may be cyclical (like a cycle of bullishness) but urgent reforms are needed to overcome deep structural problems, the Reserve Bank said in its annual report.

As the financial year 3-5 passes, the macroeconomic environment becomes unstable and financial markets are experiencing significant volatility.

The current downturn in the economy may be a moderate one that can be transformed into a cyclical downturn and not in a deep dark recession. However, groundbreaking issues in areas such as land, labor, agricultural marketing are still being seen which need to be taken up, the report also noted.

While it is difficult to diagnose and difficult to distinguish clearly, some areas are experiencing widespread cyclical decline. These areas mainly include manufacturing, hotels, construction and agriculture.

The report also said that the challenges in these areas will have to be taken to achieve comprehensive progress.


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