New Delhi: ‘India’s gross domestic production (GDP) growth at 5 per cent came as a surprise, worse than all predictions’, stated Reserve Bank of India Governor Shaktikanta Das on Monday. However, he exuded confidence that the economy will look up with a host of measures taken by the government.
“I think with the right measures taken, things should improve. It’s a positive trend that the government is responding very fast and I don’t think we have heard the last from the government with regard to dealing with the current economic situation … My expectation is that it will be a continuous process and they would definitely be dealing with other challenges”, Das stated in an interview to a leading channel.
He also asserted that the second-quarter growth of all advanced economies was lower than the first quarter so there is a deceleration. “But again I am not trying to justify our slowdown through the prism of the global slowdown although global slowdown does impact growth and results in slowdown we have domestic issues also,” Das added.
Furthermore, he stated the slowdown was visible for the past few months for which the Central Bank has been cutting rates. Since January 2019, the RBI has slashed benchmark interest rate four times consecutively. The central bank reduced the repo (short term lending) rate by 1.10 percentage points during the year.
To boost the economy, Union Finance Minister Nirmala Sitharaman had announced a slew of measures in three dosages which include a special window for real estate, export incentives, bank consolidation and sops for MSMEs and the automobile sector.
Yesterday, FICCI President Sandip Somany had hailed the measures announced by the Finance Minister in the field of real estate and exports. The industry body welcomed the government’s move saying that these new measures will provide a much-needed stimulus to boost the Indian economy that is now facing the slowdown.
(With agency inputs)