RBI governor Shaktikanta Das on Wednesday addressed the members of India Inc body FICCI. The RBI chief said economic recovery is not fully entrenched and recovery is likely to be gradual.
Here are the highlights of what he said:
Persistently large liquidity infusion by RBI has ensured large borrowing by the government at low rate and in non-disruptive manner
RBI stands battle ready to take whatever steps need to be taken for the economy
Tourism could be engine of growth and there is a lot of pent-up demand which needs to capitalised
Education contributes to economic development and New Education Policy is historic and also much needed new age reform
Economic recovery is not fully entrenched; recovery to be gradual
Interests of depositors and financial stability were kept in mind while framing the loan restructuring scheme
High frequency indicators of agricutural activity, Purchasing Managers Index for manufacturing, certain pvt estimates for unepmployment point to some stabilisation of economic activity in second quarter of current year
Contractions in many other sectors simultaneously easing
Recovery is not yet fully entranched. In some sectors, the optic noticed in June & July appear to have levelled off
By all indications, the recovery is likely to be gradual as efforts towards reopening of the economy are confronted with rising infections
High frequency indicators point to a trough in global economic activity in April to June quarter and a subsequent recovery is underway in several economies such as USA, UK, Euro area and Russia
Global economy estimated to have suffered sharpest contraction in living memory in April-June 2020 on seasonally adjusted quarter on quarter basis.