Improving infrastructure, ensuring low and stable inflation, and maintaining macroeconomic stability are critical for reviving animal spirits and spurring growth, according to an article published in the RBI Bulletin on Tuesday.

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The article titled ‘State of the Economy’ notes that the Indian economy consolidated its recovery, with most constituents surpassing pre-pandemic levels of activity.

Heightened global risks stemming from weakening growth, elevated inflation, supply disruptions on account of geopolitical spillovers, and financial market volatility stemming from synchronized monetary tightening pose near-term challenges.

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