Site icon Grainmart News

RBI Governor Shaktikanta Das Press Conference

RBI Governor Shaktikanta Das Press Conference

RBI Governor Shaktikanta Das Press Conference Source: PTI

RBI governor Shaktikanta Das announced a slew of measures in a third press conference since the coronavirus lockdown. The Indian economy may recover in the third quarter and will gain momentum in the fourth quarter.

Measures announced in Press Conference

Growth Outlook of Domestic Economy

Shaktikanta Das confirmed that the Industrial production dipped by 17% in March with manufacturing activity down by 21%. Also, the output of core industries has contracted by 6.5%. India’s forex reserves have increased by USD 9.2 billion since April 1 to USD 487 billion. The RBI projects that GDP growth in 2020-21 will remain in negative territory.

However, food grain production rose 3.7 per cent to a new record. Besides Kharif sowing was higher by 44 per cent as against last year’s acreage. Das indicated a further rate cut depending on the situation.

 Measures so Far

RBI had already announced a three-month moratorium to be given by banks to the borrowers. Besides, it had slashed the benchmark interest rate (repo rate) by a massive 75 basis points. The Finance Minister to hold a review meeting with CEOs of PSBs to discuss matters including loan disbursement, as a part of efforts to revive the economy.

Global Economic Conditions

While global markets have dwindled, macro-economic conditions are severe. Moreover, the global manufacturing PMI has contracted to 11 years low in April. WTO projects that the volume of world trade this year can shrink by 13 to 23%. 

 In all, the measures announced by Shaktikanta Das will instil confidence in the markets, ease financial conditions, and support exports and imports.

Exit mobile version