The Reserve Bank of India (RBI) reported in its monthly bulletin for December that an increase in private investment and a turnaround in bank credit offtake are driving the Indian economy's revival.  It also stated that the government sector's strong capex has benefited in the recovery process.

"The rebound in the Indian economy is being led by an increase in private investment through November-December, as well as a turnaround in bank credit offtake and high capex from the government sector (Centre and States)," according to the report.

"As a result, the employment situation has improved. Though concerns about the spread of the new Omicron strain are appearing, the outlook remains positive." By the end of November, the seven-day moving average of daily Covid-19 cases had dropped below 9,000.

"After a lull during the festival season in early November, vaccinations have picked up steam, with the seven-day moving average of vaccines reaching 80 lakh per day by the end of November and crossing the one-crore mark for the sixth time on December 4, 2021." In addition, the RBI stated in the report that aggregate demand indicators point to a prolonged recovery across spheres, albeit with hints of sequential slowdown.

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