Reviving the consumption demand and private investment has assumed the highest priority in 2019-20, notes central bank report.
Mumbai: The Reserve Bank of India (RBI), in its annual report for 2018-19, has said the lack of domestic demand is holding back the animal spirits in the economy and emphasised the need to revive consumption demand and private investment during 2019-20.
“What ails the animal spirits? At the core is the issue of domestic demand,” the RBI said in the annual report.
The report said the recent deceleration could be in the nature of a soft patch mutating into a cyclical downswing, rather than a deep structural slowdown.
“Nonetheless, there are still structural issues in land, labour, agricultural marketing and the like, which need to be addressed,” the report said, adding that the policy focus at this point should remain on improving ease of doing business.
The RBI stressed on continued focus on reforms in factors of production, faster implementation of capital expenditure by public authorities, among others.
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