In a FICCI virtual conference, Mr Shaktikanta Das, the RBI Governor, stated that the Indian economy is displaying signs of stability and the central bank will take all the necessary measures to promote economic growth and ensure liquidity in the system. He further added that the recovery is going to be gradual and the government’s Gross Domestic Product (GDP) data was a ‘reflection of the ravages of the COVID-19’.
While addressing the conference, the governor added that RBI had reduced its repo rate by 115 basis points to 4% since March 2020, wherein the high liquidity and low interest rate ensured low borrowing costs for the government. As the reduction in policy repo rates have eased operations and markets are bouncing back, he asked businesses to capitalise on the new opportunities created by COVID-19 worldwide.
"INR3.2 trillion (US$0.04 trillion) of bond issuance in corporate bond market has happened till 28 August," he added.
"There are five key areas that I propose to focus on that I think will determine stability and step up India's growth in the medium term. First is human capital with specific emphasis on education and health; second is productivity; exports which is leading to India's role in the global value chain; fourth tourism; food processing associated productivity areas," said Das.
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