The Reserve Bank of India (RBI) has released its annual report for the year 2017-18 stating that the credit growth has revived fuelling growth prospects in the country. According to the report,” In the evolution of monetary aggregates, currency in circulation surpassed its pre-demonetisation level while credit growth revived to double digit from a historic low in the previous year.” Also Read - RAI Writes to RBI, Seeks 4% Interest Subvention For 9 Months For Retail Sector
The report also stated that inflation has eased, which is a positive sign for the economy. “Indian economy exhibited resilience during 2017-18, with upturns in investment and construction. Inflation eased on a year-on-year basis in an environment characterised by high variability.” Also Read - ‘No Revenue Loss For NBFCs on 3-Month Moratorium on Loan Repayments'
Equity and bond markets also provided a good support to the economy in 2017-2018. “Domestic financial markets were broadly stable, with rallies in equity markets & intermittent corrections, hardening bond yields, the rupee trading with a generally appreciating bias except towards close of the year and ample liquidity in money markets.” Also Read - RBI EMI Moratorium: What Way it is Going to Benefit You | Here's Everything You need To Know
Transition to GST was another landmark in establishing the efficient indirect tax system. “Implementation of GST achieved another important milestone towards an efficient indirect tax structure. On the external front, the current account deficit was comfortably financed with accretions to foreign exchange reserves.”