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The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) member Ashima Goyal is expecting India's economy to do well once vaccination reaches a critical mass as pent up demand, global recovery and easy financial conditions will boost activities.

As India battles a fearsome second COVID wave, she also said that the damage to the economy due to lockdowns is much less and is unlikely to extend beyond the first quarter of the current fiscal. She further noted that India has the potential to be a centre of vaccine production and will be able to ramp it up soon. Once vaccination reaches a critical mass, the economy will do well with pent up demand, global recovery and easy financial conditions.

On the government's ambitious target to make India a USD 5-trillion economy by 2024-25, Goyal said that after such an extended and unforeseen pandemic, it will take longer. Moreover, COVID-19 related uncertainties are not over yet.