Omicron variant may cast shadow on contact-based services: RBI

NEW DELHI: Shaktikanta Das, Governor, Reserve Bank of India (RBI), said that the Indian economy is facing severe headwinds emanating from global factors. He talked about the condition of the Indian economy in face of the ongoing pandemic in the monetary policy meeting held recently. He determined that supply disruptions and other obstacles that were expected to be resolved by the end of the year now have a shelf life that extends beyond 2022.

Global trade, which had recovered well in the first half of 2021, has slowed due to tight supply chains and logistics challenges, shortages of essential components, and a slowdown in important regions, according to Das. Moreover, emergence of the Omicron variant of the novel coronavirus may cast shadow on the momentum gained in contact-based services, which were showing signs of recovery in recent months, he added. The threat of Omicron is also causing financial markets to become more volatile.