RBI Governor Shaktikanta Das addressed members of India Inc.’s FICCI body today. The RBI chief said the economic recovery is not fully entrenched and the recovery is likely to be gradual.
These are the highlights of what he said:
The persistently large infusion of liquidity by the RBI has ensured large indebtedness by the government at a low rate and without interruptions.
RBI is ready for battle to take action for the economy
Tourism could be an engine for growth and there is a lot of pent-up demand that needs to be capitalized
Education contributes to economic development and the new education policy is historic and also a much needed new age reform
The economic recovery is not fully entrenched; recovery is gradual
Depositors’ interests and financial stability were taken into account when framing the loan restructuring scheme
High-frequency indicators of agricultural activity, the purchasing managers’ index for the manufacturing industry, certain estimates of pvt for unemployment point to some stabilization of economic activity in the second quarter of the current year
Contractions in many other sectors decrease simultaneously
The recovery is not yet completely fascinated. In some sectors, the perspective observed in June and July seems to have stabilized
By all indications, the recovery is likely to be gradual, as efforts to reopen the economy face an increase in infections.
High-frequency indicators point to a low point in global economic activity in the April-June quarter and a subsequent recovery is taking place in several economies such as the US, UK, euro area and Russia
The world economy is estimated to have suffered the steepest contraction on record in April-June 2020 on a seasonally adjusted quarterly basis.
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