The Indian economy has shown a stronger than expected rebound in the recovery, Reserve Bank of India Governor Shaktikanta Das said on Thursday, adding that there is a need to keep an eye on the sustainability of demand after the end of the festivities.
Speaking at the annual event of the Foreign Exchange Traders Association of India (FEDAI), Das said there are downside risks to growth around the world and also in India.
“After witnessing a strong contraction of the economy of 23.9 percent in the first quarter and a normalization of activity at various speeds in the second, the Indian economy has shown a stronger than expected rebound in the momentum of the recovery, “Das said.
The Indian economy contracted 23.9 percent in the first quarter of the fiscal year, and the RBI expects the economy to contract 9.5 percent in fiscal 21.
This is what the Governor of the Reserve Bank of India, Shaktikanta Das said
- Even as growth prospects have improved, downside risks to growth continue due to the recent surge in infections in parts of Europe and also in parts of India
- We must be vigilant about the sustainability of demand after the festivals and a possible re-evaluation of market expectations around the vaccine.
- Regulatory reforms have taken financial markets to the next trajectory amid the pandemic and have affirmed RBI’s commitment to ensuring orderly conduct in the markets.
- India will continue to approach capital account convertibility as a process, rather than an event within a broad macroeconomic framework.
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