Among the steps being taken by the Modi government to bring back the economy stuck in the grip of corona, RBI Governor Shaktikant Das today said that the RBI is ready to take whatever steps are needed for the economy. He said the improvement in the economy has not reached full speed, it will happen gradually. He has raised a lot of hopes from the tourism sector. Shaktikanta Das says the tourism sector could become the engine of economic growth, there is a huge demand in the region, which needs to be tapped.
Speaking as the chief guest at the FICCI National Executive Committee meeting, the RBI chief said that the economic recovery was not complete. The first quarter GDP data showed the impact of the coronavirus epidemic on the economy. He further said that education contributes to economic development, new education policy is historical and it is necessary for the reform of the new era.
Recovery has not yet been fully entered. In some sectors, the optic observed in June and July seems to have flattened. With all indications, the recovery is likely to increase gradually as the economy struggles to revive in the face of a growing contagion: RBI Governor Shaktikant Das https://t.co/0Vo8mhCtSI
– ANI (@ANI) September 16, 2020
The private sector should play an important role in the rapid development of the economy in the areas of research, innovation, tourism, food processing. At the same time, he further said that the uninterrupted availability of huge amount of cash from the RBI has ensured a large-scale orrow from the government at a low rate and without any hassle. This statement of the RBI is very important. However, several rating agencies have forecast a slowdown in India’s growth in the current financial year.
This is the growth rate of India in the current financial year 2020-21
|Rating agency||Growth rate (percent)|
Earlier, S&P Global Ratings said on Monday that the Indian economy would shrink by 9 per cent in the current financial year. S&P had earlier forecast a five per cent decline in the Indian economy. Last week, Moody’s and Fitch, two more global rating agencies, downgraded India’s growth forecast. Moody’s has forecast a 11.5 per cent decline in the Indian economy and 10.5 per cent in the current financial year. However, Goldman Sachs estimates that the Indian economy has shrunk by 14.6 per cent in the current financial year.
Speaking of domestic rating agencies, India Ratings and Research has forecast an 11.6 per cent decline in the Indian economy in the current financial year. Crisil forecasts a 9 percent decline. The ADB said the government has introduced rural employment guarantees and other social security measures to combat the epidemic. While this will benefit the weaker parts of rural areas, it will not help increase private spending.
ADB estimates that developing Asia’s GDP will shrink by 0.7 percent by 2020. This will be the first collapse of Asia development since 1962. In contrast, China will register 1.8 percent growth this year. In 2021, China is expected to grow by 7.7 percent. Developing countries do not come to developed countries like Japan.