RBI Governor says Corona’s impact on GDP, but economy will pick up pace. Reserve Bank of India (RBI) Governor Shaktikanta Das has made a big statement on GDP in an effort to bring back the economy that is suffering from the corona virus epidemic. He said that corona has an impact on the GDP of the country but it is expected that the economy will soon gain momentum.
RBI Governor says Corona’s impact on GDP, but economy will pick up pace
Governor Shaktikanta Das said on Wednesday that the Reserve Bank is fully prepared for whatever steps will be needed to improve the economy. He said that the improvement in the economy has not reached full speed yet, it will progress slowly. The RBI governor said that the GDP data indicates the outbreak of covid-19 on the economy. The economy is expected to gain momentum after covid-19.
Advice given to private sector
The RBI governor asked the private sector to move forward and contribute to speed up the reforms in the economy. The Governor has asked the private sector to play an important role in research, food processing and tourism sector. He has said that there is a huge potential in the tourism sector and the private sector should take advantage of it.
According to the governor, the continuous availability of large amounts of cash by the RBI has ensured large-scale borrowing at a low rate and without any hassle for the government. This is the first time in the last decade that the borrowing cost has come down so much.
Let us know that the rating agencies across the country are reducing the GDP estimate for this financial year ie 2020-21. Due to the recent Corona crisis, the country’s June quarter GDP has declined negatively by 23.9 percent. This was the biggest decline of modern history of India. This drastic fall in the economy due to the drastic lockdown imposed in March.