Indian economy progressing well; high oil prices pose risks: Ashima Goyal

India’s economic recovery from COVID-19 is progressing well, with better than expected growth rates, and the trajectory will continue but persistently high oil prices can play spoilsport, eminent economist Ashima Goyal said on Sunday.

Goyal, who is also a member of the Monetary Policy Committee (MPC) of the RBI, further said inflation, which has largely remained within the central bank’s tolerance band, was also showing signs of moderating as supply conditions eased because there was no over-stimulus unlike in many western countries.

“India’s economic recovery from COVID-19 is progressing well, with better than generally expected growth rates. Higher growth is not just due to a base effect, because Indian growth in 2021 exceeds that of many countries, which had a worse fall in growth in 2020,”