Return of Mutual Fund
In March 2021, equity mutual funds witnessed a net inflow of Rs 9,115 crore. It was for the first time after eight consecutive months of outflow.
Investment via SIP continued to climb as it went up to Rs 9,182 crore in March compared to Rs 7,528 crore in the previous month. The outstanding SIP accounts increased to 3.72 crores in March compared to 3.62 crores in February.
In March 2021, SIP inflow was the highest ever as the figures crossed the Rs 9,000 crore mark for the first time. Also, the equity funds reported inflow for the first time in eight months. It indicates that people are trusting the mutual funds again as the market has turned volatile.
The RBI governor Shaktikanta Das sees rising COVID-19 cases as the single biggest challenge to the ongoing recovery. However, he believes that learning from the last year should, however, help us in managing the crisis.
The MPC members also discussed how to secure the economic recovery and make it broad-based and durable. The committee members also suggested maintaining the accommodative stance for as long as required.
The MPC minutes express the opinions of committee members. It is an important document to understand their thought process. The minutes clearly reveal that members are completely focused on maintaining the recovery.
Apart from that, managing the bond yields is a big challenge that MPC is facing. However, they have already stretched their resources. Considering that, it is going to be a stern test for them during the upcoming meets.
Agriculture: A Rare Bright Spot In Economy
India's agriculture export increased by 18% to Rs 2.74 lakh crore during April 2020-February 2021.
The commodities like wheat, rice (non-Basmati), soya meal, spices, sugar, raw cotton, fresh and processed vegetables, and alcoholic beverages reported significant positive growth. Wheat export grew by 727%, increasing from Rs 425 crore to Rs 3,283 crore during this period.
Agriculture is not the sector that is usually described as a high growth sector. However, it has constantly reported high growth since the beginning of the pandemic in March 2020. A stable rural economy has been one of the high points for an otherwise struggling economy during the pandemic.