<p>The Indian economy was riddled with several structural impediments to growth even before the outbreak of Covid-19 which had dampened the investment outlook. Covid-induced supply disruptions have imposed testing challenges, and it will take nearly 15 years for the Indian economy to make up for the losses during the pandemic, a new RBI report said on Friday.</p>.<p>"Taking the actual growth rate of -6.6% for 2020-21, 8.9% for 2021-22 and assuming growth rate of 7.2% for 2022-23, and 7.5% beyond that, India is expected to overcome Covid-19 losses in 2034-35," the report on Currency and Finance said.</p>.<p>On sector-specific findings, the report said the agriculture sector suffers from low capital formation, declining R&D, low crop yields, inadequate crop diversity and intensity, with excessive dependence on subsidies and price support schemes. India’s dependence on imports of minerals, depleted natural endowment is another drag.</p>.<p>In manufacturing, a few capital intensive industries have garnered the lion’s share of physical investment, whereas the investment share of employment generating industries and high-demand electronics and computer industries has either stagnated or contracted over the years.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/structural-reforms-price-stability-key-for-sustained-growth-rbi-report-1105065.html" target="_blank">Structural reforms, price stability key for sustained growth: RBI report</a></strong></p>.<p>In the services sector, growth slowdown was primarily led by construction, financial services, and transport and communication services, due to prevalence of many sector-specific problems.</p>.<p>It said though the government has initiated certain reforms, these need to be augmented by other measures to reverse the sustained decline in private investment and low productivity in the economy.</p>.<p>"What is needed include access to litigation free low cost land; raising the quality of labour through large scale expansion of public expenditure on education and health and the skill India mission; reducing the cost of capital for industry and improve resource allocation in the economy by promoting competition; encouraging industries and corporates to scale up research and development activities with an emphasis on innovation and technology," the report said.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
<p>The Indian economy was riddled with several structural impediments to growth even before the outbreak of Covid-19 which had dampened the investment outlook. Covid-induced supply disruptions have imposed testing challenges, and it will take nearly 15 years for the Indian economy to make up for the losses during the pandemic, a new RBI report said on Friday.</p>.<p>"Taking the actual growth rate of -6.6% for 2020-21, 8.9% for 2021-22 and assuming growth rate of 7.2% for 2022-23, and 7.5% beyond that, India is expected to overcome Covid-19 losses in 2034-35," the report on Currency and Finance said.</p>.<p>On sector-specific findings, the report said the agriculture sector suffers from low capital formation, declining R&D, low crop yields, inadequate crop diversity and intensity, with excessive dependence on subsidies and price support schemes. India’s dependence on imports of minerals, depleted natural endowment is another drag.</p>.<p>In manufacturing, a few capital intensive industries have garnered the lion’s share of physical investment, whereas the investment share of employment generating industries and high-demand electronics and computer industries has either stagnated or contracted over the years.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/structural-reforms-price-stability-key-for-sustained-growth-rbi-report-1105065.html" target="_blank">Structural reforms, price stability key for sustained growth: RBI report</a></strong></p>.<p>In the services sector, growth slowdown was primarily led by construction, financial services, and transport and communication services, due to prevalence of many sector-specific problems.</p>.<p>It said though the government has initiated certain reforms, these need to be augmented by other measures to reverse the sustained decline in private investment and low productivity in the economy.</p>.<p>"What is needed include access to litigation free low cost land; raising the quality of labour through large scale expansion of public expenditure on education and health and the skill India mission; reducing the cost of capital for industry and improve resource allocation in the economy by promoting competition; encouraging industries and corporates to scale up research and development activities with an emphasis on innovation and technology," the report said.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
