India at cusp of turnaround in fortunes, says RBI governor: Key points – Times of India
[ad_1]
NEW DELHI: Reserve Bank of India governor Shaktikanta Das on Thursday said that India is at the cusp of turnaround in fortunes with sectors recovering from Covid-induced slowdowns.
Addressing the 185th foundation day of Bombay Chamber of Commerce, Das noted that manufacturing sector has shown good recovery and is spearheading growth.
Here are the key points from Shaktikanta Das’s speech:
* Fuel price hike has cost-push factor as they have an impact on cost of manufacturing. Hence, there is need for coordinated action between centre, states on reduction in taxes on fuel prices.
* Both the centre and the state governments have their revenue pressures and they are required to spend high sums of money to enable the country and the people to come out of the Covid-19 pandemic stress.
* We have precise idea of build up of stressed assets in banks. The financial sector in much better place now than earlier.
* RBI is working towards improving regulatory architecture for micro finance institutions (MFIs).
* Refining regulatory architecture on asset reconstruction companies (ARCs) is on cards.
* Corporate sector needs to invest more in healthcare facilities.
* MSME sector has emerged as growth engine of economy.
* We will continue to support the recovery process by ensuring ample amount of liquidity in the system, while maintaining financial stability.
* Global GDP is estimated to have contracted by 3.5 per cent during 2020, much higher than 0.1 per cent witnessed during financial crisis of 2008.
* While, global merchandise trade is estimated to have contracted only by 9.2 per cent in 2020 as against a contraction of 22 per cent during 2009.
* This differential pattern could be attributed to major role played by the domestic drivers across countries, induced by the lockdown during the recent episode of Covid-19.
* Even though merchandise trade has shown signs of recovery during December 2020, recovery of services trade is yet to gain traction as subdued cross border tourism and travel restrictions continue to weigh in on overall sector.
* Manufacturing sector is spearheading growth recovery as many contact-intensive services segments are severely affected by the crisis.
* Initiatives of government under Atmanirbhar Bharat Abhiyan and Union Budget 2021 towards developing a vibrant manufacturing sector and infrastructure acknowledges the strong linkages they have with rest of the sectors.
* The PLI scheme aims to make India an integral part of global value chain. This along with reforms in labour market can go a long way in propelling growth to an elevated trajectory for the manufacturing sector and reap its employment potential in India.
Addressing the 185th foundation day of Bombay Chamber of Commerce, Das noted that manufacturing sector has shown good recovery and is spearheading growth.
Here are the key points from Shaktikanta Das’s speech:
* Fuel price hike has cost-push factor as they have an impact on cost of manufacturing. Hence, there is need for coordinated action between centre, states on reduction in taxes on fuel prices.
* Both the centre and the state governments have their revenue pressures and they are required to spend high sums of money to enable the country and the people to come out of the Covid-19 pandemic stress.
* We have precise idea of build up of stressed assets in banks. The financial sector in much better place now than earlier.
* RBI is working towards improving regulatory architecture for micro finance institutions (MFIs).
* Refining regulatory architecture on asset reconstruction companies (ARCs) is on cards.
* Corporate sector needs to invest more in healthcare facilities.
* MSME sector has emerged as growth engine of economy.
* We will continue to support the recovery process by ensuring ample amount of liquidity in the system, while maintaining financial stability.
* Global GDP is estimated to have contracted by 3.5 per cent during 2020, much higher than 0.1 per cent witnessed during financial crisis of 2008.
* While, global merchandise trade is estimated to have contracted only by 9.2 per cent in 2020 as against a contraction of 22 per cent during 2009.
* This differential pattern could be attributed to major role played by the domestic drivers across countries, induced by the lockdown during the recent episode of Covid-19.
* Even though merchandise trade has shown signs of recovery during December 2020, recovery of services trade is yet to gain traction as subdued cross border tourism and travel restrictions continue to weigh in on overall sector.
* Manufacturing sector is spearheading growth recovery as many contact-intensive services segments are severely affected by the crisis.
* Initiatives of government under Atmanirbhar Bharat Abhiyan and Union Budget 2021 towards developing a vibrant manufacturing sector and infrastructure acknowledges the strong linkages they have with rest of the sectors.
* The PLI scheme aims to make India an integral part of global value chain. This along with reforms in labour market can go a long way in propelling growth to an elevated trajectory for the manufacturing sector and reap its employment potential in India.
[ad_2]
Source link
