RBI Governor Das assured that the central bank is going to take all necessary measures to ensure liquidity in the system and promote economic growth.
RBI Governor Shaktikanta Das on Wednesday said that the Indian economy is showing signs of stability and he assured the industry that the central bank is going to take all necessary measures to ensure liquidity in the system and promote economic growth. He was addressing a virtual conference organised by industry body Ficci.
According to Das, the Gross Domestic Product (GDP) data released by the government was a “manifestation of the destruction of the COVID-19”. He said that the recovery would be gradual as it is not yet fully entrenched.
The Indian economy contracted by 23.9% in the April-June quarter of the current financial year.
Das said low interest rate and high liquidity ensured low borrowing cost for the government. The RBI reduced repo rate by 115 basis points to 4% since March 2020.
In his address, Das spoke about the initiatives taken by the central bank to ease the liquidity situation and make available funds to the businesses impacted by the pandemic and subsequent lockdowns.
The Governor assured that RBI is battle ready… whatever measures are required will be taken by the RBI. He said that they are ready to help the industry and businesses to come out of the induced crisis due to COVID-19. He suggested the businesses to capitalize on the new opportunities created by the pandemic at the global level.
Das said expenditure on education needs to be raised. Must pursue goal of 6% public investment in education.
He has proposed five key areas to focus on that will determine stability and step up India’s growth in the medium term.
Firstly, human capital with specific emphasis on education and health
Second is productivity
Third is exports which is leading to India’s role in the global value chain
Fourth is tourism
Fifth is food processing associated productivity areas.