Mumbai, June 17 -- Cautious optimism has started to return to India's economy which was heavily battered by Covid 2.0, the Reserve Bank of India said on Wednesday.

The June issue of RBI's monthly bulletin said: "The Indian economy continues to wrestle with the second wave of the pandemic, though cautious optimism is returning. By current assessment, the second wave's toll is mainly in terms of the hit to domestic demand."

"On the brighter side, several aspects of aggregate supply conditions - agriculture and contactless services are holding up, while industrial production and exports have surged compared to last year amidst pandemic protocols."

Going forward, the bulletin's article on 'State of the Economy' cited that speed and scale o...