File photo of RBI Governor Shaktikanta Das
COVID-19 pandemic break backbone of almost every sector and most importantly the economy level falls down at a very high rate that no one has expected. The Indian economy has exhibited a stronger than expected momentum in activity. In our country there is more middle class age than any other group or community and the rotation of money can be seen in day to day life. People are not able to generate revenue, business experience a great loss in revenue and in customer service. People don’t visit retail stores very frequently because of pandemic. There are lot more things which harms the economy very badly. RBI governor Shrikanta Das said that after seeing a sharp GDP contraction in the first quarter, the Indian economy has exhibited a stronger than expected momentum in activity. However, he added that even as the growth outlook has improved, downside risks remain with respect to the surge in Covid infections. We need to be watchful about the sustainability of demand after festivals and a possible reassessment of market expectations surroundings the vaccine. The calibrated opening up of the economy can supplement domestic savings, and help fund the growth requirements, Shaktikanta Das underlined while speaking at the 4th annual day of foreign exchange dealers Association of India.
The economy has exhibited a stronger than expected recovery but the recent surge in Covid-19 cases in some parts of the country poses a key risk to that revival, Reserve Bank of India (RBI) Governor Shaktikanta Das said Thursday. After witnessing a sharp contraction in GDP of -23.9 percent in the first quarter of the current financial year and a multi-speed normalization of activity in the second quarter, the Indian economy has exhibited stronger than expected pick up in momentum of recovery,” he said while addressing an event organized by the Foreign Exchange Dealers’ Association of India. The Indian economy is expected to contract by a much lower magnitude in the July-September quarter as compared to the April-June quarter when the country reported the highest economic contraction in its history. The second quarter GDP data is due to be released Friday by the National Statistical office. Das pointed out that even as the growth outlook has improved the downside risks to growth continue due to recent surge in infection in parts of India. Das said the surplus current account balance has been the key source of resilience for the Indian economy. The monetary policy guidance in October emphasized the need to see through temporary inflation pressures and also maintain the accommodative stance at least during the current financial year and into the next financial year. He said “a key source of resilience in recent months has been the comfortable external balance position of India supported by surplus current account balances over two consecutive quarters, resumption of portfolio capital inflows on the back of robust FDI inflows, and sustained build-up of foreign exchange reserves.”
Das also talked about how a calibrated opening up of the economy can supplement domestic savings and help finance growth and development.
