Only private investment is "missing in action" at a time when all engines of aggregate demand are starting to fire to boost economic growth, according to a Reserve Bank of India (RBI) article.

Observing that there is little doubt today that a recovery based on a revival of consumption is underway, the RBI in the recent article said, "the jury leans towards such recoveries being shallow and short-lived".

RBI said, the key to whet the appetite for investment is to rekindle the animal spirits, a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities. All engines of aggregate demand are starting to fire; only private investment is missing in action. The time is apposite for private investment to come alive," said the article prepared by RBI Deputy Governor Michael Debabrata Patra and other officials.

The article published in the RBI Bulletin- February 2021 points out:  "the time is apposite" for private investment to come alive. Fiscal policy, with the largest CAPEX budget ever and emphasis on doing business better, has offered to crowd it in. "Will Indian industry and entrepreneurship pick up the gauntlet?," it said. The economy is expected to stage a V-shaped recovery in the next fiscal and record double-digit growth.

Reserve Bank favors retaining current inflation target

RBI Governor Shaktikanta Das Raises ‘Major Concerns' on Bitcoins

Supreme Court Asks RBI To Come Up With Detailed norms On Locker Management