RBI takes the step to recover the economy BANK NEWS
New Delhi: The Governor of the Reserve Bank of India on Wednesday address a meeting of FICCI’s National Executive Committee, where he mentions that the economy has not reached full speed, it will move forward gradually. The availability of large amounts of cash from RBI has ensured large scale borrowings for the government at a lower rate and without any hassle. The central bank is fully prepared for whatever steps will need to be taken to improve the economy, "Das said.
The recovery is, however, not yet fully entrenched and moreover, in some sectors, upticks in June and July appear to be leveling off. By all indications, the recovery is likely to be gradual as efforts towards the reopening of the economy are confronted with rising infections.
The global economy is estimated to have suffered the sharpest contraction in living memory in April-June 2020 on a seasonally adjusted quarter-on-quarter basis. World merchandise trade is estimated to have registered a steep year-on-year decline of more than 18 percent in Q2 of 2020, according to the Goods Trade Barometer of the World Trade Organization (WTO), mentioned in the release.
While interacting with members of the National Council of the Confederation of Indian Industry (CII) on July 27, 2020, he covered five major dynamic shifts taking place in the economy:
- fortunes shifting in favor of the farm sector
- changing energy mix in favor of renewables;
- leveraging information and communication technology (ICT) and start-ups to power growth
- shifts in supply/value chains, both domestic and global; and
- infrastructure as the force multiplier of growth.
He further said, “I would like to touch upon five areas that, I feel would determine our ability to step up and sustain India’s growth in the medium-run: (i) human capital, in particular education and health; (ii) productivity; (iii) exports, which is linked to raising India’s role in the global value chain; (iv) tourism; and (v) food processing and associated productivity gains.
In the end, he mentions “I do believe that together as a nation, we can certainly do it. Let me conclude on this optimistic note.”
Posted Date : 16-09-20
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