RBI Governor Shaktikanta Das has said that economy is showing signs of recovery
Signs of economic recovery are visible as various indicators have shown positive growth and therefore banks should be ready when the investment cycle revives, Reserve Bank of India (RBI) Governor Shaktikanta Das said.
“There are signs that consumption demand, triggered by the festive season, is making a strong comeback. This should encourage firms to expand capacity and boost employment as well as investment amid congenial financial conditions,” he noted.
Mr Das added that the gross non-performing assets (NPAs) of banks have shown improvement in September 2021 compared to June 2021 levels and called upon financial institutions to shore up their capital management process.
Addressing a banking conclave organised by the State Bank of India (SBI), Mr Das said that the cut in excise duty on petrol and diesel will further enhance people’s purchasing power.
He added that public expenditure will play a major role in pushing investment-led recovery, while expressing hope that the country has the potential to grow at a steadier pace in the post-Coronavirus pandemic scenario.
“India’s remarkable progress on vaccines is a shining example of scientific capabilities,” the RBI governor said, though adding at the same time that contact-intensive services still need to get back lost momentum.
Mr Das said that the first quarter GDP data has shown that there is a significant gap in private consumption and investment and greater push is needed to exceed the growth levels of the pre-pandemic times.
He lauded India’s emergence as a top performer in the startup landscape.
Speaking on cryptocurrency, Mr Das said that when the RBI after due internal deliberations says there are concerns on macroeconomic and financial stability from it, then there is a need for deeper discussions.
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