Mumbai, August 25: Reserve Bank of India (RBI) on Tuesday said that the promotion of young firms and startups and ensuring their survival is critical for generating more employment generation and higher productivity-led economic growth in India. RBI's annual report for 2019-20 mentioned that it will be essential to reorient resources and policy focus in this direction.

RBI in its report mentioned that Indian IT firms are already leading globally in terms of developing applications using artificial intelligence (AI), machine learning (ML), robotics, and blockchain technology. This niche advantage needs to be leveraged to strengthen India’s position as an innovation hub, coupled with India's 'Start-up India' campaign which recognises the potential of young entrepreneurs of the country.

Commenting on the economic growth revival of the country following the impact of coronavirus, RBI said that the government's consumption will continue to support current economic demand while private consumption is expected to lead the recovery.