RBI Governor Shaktikanta Das is happy with the way the Indian economy is performing. He said that the pickup in recovery has been stronger than expected. Much like the rest of the world, the coronavirus pandemic ripped India's economy apart, leaving thousands jobless and pounded almost all sectors.
Das was speaking at the Foreign Exchange Dealers' Association of India (FEDAI) where he expressed satisfaction at the trajectory taken by the Indian economy. "After witnessing a sharp contraction in the economy by 23.9% in Q1 and a multi-speed normalization of activity in Q2, the Indian economy has exhibited stronger than expected pick-up in momentum of recovery," Das said.
"Even as the growth outlook has improved, downside risks to growth continue due to recent surge in infections in parts of Europe and also in parts of India," he added. It is extremely important to maintain demand, more so in the post-festive season, Das stated.
The governor said India witnessed a change in the last three decades - "from being a virtually closed economy to one that is globally connected and open to a much larger volume of international transactions and capital flows than before. Capital account convertibility will continue to be approached as a process rather than an event, taking cognizance of prevalent macroeconomic conditions. A long-term vision with short and medium-term goals is the way ahead," said Das.
