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Reserve Bank of India’s (RBI) article has said that India's overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit, and expectations that Omicron may turn out to be a flash flood rather than a wave have further brightened the prospects. It stated, on the vaccination front, India has made rapid strides. On the Omicron variant, the recent data from the UK and South Africa suggest that such infections are 66 to 80 per cent less severe, with a lower need for hospitalization.

It mentioned that there are indications that supply chain disruptions and shipping costs are slowly easing, although the waning of inflation may take longer. This provides a window of opportunity to focus all energies on accelerating and broadening the global recovery.

It also said that data for early January 2022 (up to January 12) indicate growth in digital payments, although the recent surge in infections may pose a concern going forward. Nevertheless, the payment industry is expected to display resilience owing to availability of varied checkout options and rising digital. The central bank said the views expressed in the article are those of the authors and do not necessarily represent the views of the Reserve Bank of India.