Covid-19: Indian economy to recover gradually, says RBI Governor
“Economic recovery is not fully entrenched; recovery to be gradual,” said Das in a virtual meeting of FICCI National Executive Committee.Updated: Sep 16, 2020 13:16 IST
The Indian economy, reeling under the impact of coronavirus disease (Covid-19) pandemic, will recover gradually, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Wednesday.
“Economic recovery is not fully entrenched; it will be gradual,” Das said in a virtual meeting of FICCI National Executive Committee.
The central bank chief also said that the RBI stands battle-ready to take whatever steps that are needed to be taken for the economy.
Referring to the GDP contraction of 23.9 per cent in the first quarter (Q1), Das said that it is the “reflection of the ravages of the Covid-19”.
He further noted that high-frequency indicators like agricultural activity, Purchasing Managers Index for manufacturing, certain private estimates for unemployment, point to some stabilisation of economic activity in the second quarter of the current year.
“Contractions in many other sectors are simultaneously easing,” Das said.
The deadly Covid-19 has severely hit businesses and livelihoods across the country.
The government and RBI have been taking measures for mitigating the impact of pandemic on the economy by introducing stimulus packages, reforms, and interest rate cuts.
However, the revival is expected to take time as there is still high uncertainty regarding Covid-19 cases across the country.