Tribune News Service
New Delhi, September 16
Reserve Bank of India (RBI) Governor Shaktikanta Das sought to mission an optimistic outlook for the economic system in his handle to an industrial chamber after the GDP for the primary quarter recorded a minus 24 crash.
Predicting a gradual restoration as towards a “V” formed bounce-back being advised by economists near the federal government, Das mentioned within the medium-term, India wanted to give attention to 5 areas – human capital in schooling and well being, productiveness, exports, tourism and meals processing.
The dawn sectors that supply potential for increased exports within the post-Covid interval are medicine and prescription drugs.
“A sharp policy focus on other global value chain intensive network products, including equipment for IT hardware, electrical appliances, electronics, telecommunications, and automobiles would also provide the cutting edge to India’s export strategy with considerable scope for higher value additions,” he added.
India additionally wanted to maneuver up on the worldwide agriculture worth chain. Despite being one of many largest meals producers, its place within the world worth chain is kind of low. Tourism and hospitality sector had been impacted extra by Covid however expressed hope for early revival.
“Tourism as an engine of growth and pent up demand could drive a V-shaped recovery. Employment elasticity for the tourism sector is also quite high,” added Das.
He mentioned that the speedy coverage response to Covid was to stabilise the economic system and assist a fast restoration.
“The RBI stands battle-ready to fight the economic downturn and industry appreciates this and stands alongside in this joint battle,” famous FICCI president Sangita Reddy.
“But a lot more support is needed to rebuild businesses, especially in the hard-hit sectors like tourism, aviation, hospitality, retail and healthcare,” she added.
“Credit off-take by the MSMEs under the Emergency Credit Line Guarantee Scheme (ECLGS) can be considerably increased by making the scheme simpler and expanding its coverage,” she mentioned.