Speaking at a panel discussion conducted by Bloomberg Quint, Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday, 21 October, said that India is “at the doorstep of revival process” from the COVID-19 pandemic, according to media reports.
Das further said, as per Livemint:
- “It's very important that the financial entities have adequate capital (to support growth).” He also added that many financial entities have already raised capital and others are planning and will do so in the months to come.
- "I think post COVID, once there is containment of pandemic, the government will certainly have to spell out a fiscal roadmap that India should adopt.”
- "We need to build capital buffer for banks, NBFCs to deal with stress caused by COVID-19"
BACKGROUND
Meanwhile, on 9 October, Das had announced that the RBI’s Monetary Policy Committee (MPC) has voted unanimously to leave the policy repo rate unchanged at 4 percent.
On the question of economic growth amid the COVID-19 crisis, Das, on 9 October, said that real GDP is expected to contract by 9.5 percent in the current fiscal.
"GDP growth may break out of contraction and enter positive zone by Q4 of current fiscal... Modest recovery in first half of the year could further strengthen in the second half... Economic activity will gain traction in Q3," he was quoted by PTI as saying.
(With inputs from Livemint and PTI.)
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