According to the Reserve Bank of India Governor D Subbarao, though there are explicit indications of an economic recovery - evident in the advancement of sowing of the rabi crop, the traffic increase at ports, and the freight revenue increases - the prospective revival is still at an embryonic stage.

Subbarao said: "There are incipient signs of revival of business confidence. But these signs may have to be more widespread across indicators and more durable to draw any clear inference on the timing and the pace of recovery."

Making a mention of other pointers of the recovery, the RBI chairman said that foreign exchange reserves are not only 'comfortable' but also 'sufficient' for dealing with short-term volatility; the rural demand is holding up; and institutional credit to agriculture is on track.

Subbarao further said that though to say precisely when the economy will start recovering is somewhat difficult, the rapidity of decline has started moderating in certain spheres, with some sectors already depicting signs of recovery.

Linking the pace of recovery of India's "supply-constrained economy, not demand-constrained" economy with that of the worldwide economy, Subbarao said that with a turnaround in the global scenario, India's recovery will be sharper and swifter, "backed by our strong fundamentals and untapped growth potential."