The bi-monthly policy assumes significance as it will be announced just a week before the commencement of the seven-phase general elections beginning April 11
The report also points out towards a seven-pronged strategy for India to attain a growth rate of 9-10 per cent to become $5 trillion and create 10 crore jobs, by 2023-24.
In the report, foreign brokerage Goldman Sachs attributed the low food prices in the last few months to the prices of cereals and vegetables which have been low for some time.
Going forward, food inflation is unlikely to shoot up sharply unless there is some shock related to weather events.
Exporters need to obtain licence from the government for certain restricted category goods such as bio-fuels.
According to a senior official of the RBI, the liquidity position in the system is comfortable and the central bank is constantly monitoring the situation in the system.
As per the IIP data in January released by the Central Statistics Office (CSO), the growth in industrial production declined to 1.7 per cent as against 7.5 per cent a year ago, owing to subdued performance of the manufacturing sector, especially capital and consumer goods.
On the prices front, the report said, reversal in food prices that have remained unusually low are likely to push up inflation.
Observing that FinTech has the potential to reshape the financial services and financial inclusion landscape in India in fundamental ways, he said, it can reduce costs and improve access and quality of financial services.
However, India is amongst the countries with high pollution levels and has a relatively high CO2 intensity in its energy system.