In a positive development, the Reserve Bank of India (RBI) on Thursday (24 December) said that India's economy is reviving at a pace higher than most predictions.

In its monthly bulletin for the month of December, the central bank has said that more evidence has emerged, since the last assessment in November, that shows the Indian economy is pulling out of Covid-19 induced slowdown.

"Since the assessment presented in the last month’s Article, more evidence has been turned in to show that the Indian economy is pulling out of COVID-19’s deep abyss and is reflating at a pace that beats most predictions," the RBI said.

The central bank further said that economic conditions continued to improve through November 2020 on the back of the uptick in agriculture and manufacturing activity.

It should be noted that India's gross domestic product (GDP) contracted by 23.9 per cent and 7.5 per cent in the April-June and July-September quarter respectively, reports Economic Times.

In its December bulletin, the RBI further noted that the financial conditions embodied in interest rates are perhaps at their easiest in decades.

Although headwinds blow, steadfast efforts by all stakeholders could put India on a faster growth trajectory, it said.