Green shoots of recovery need to sustain, says Das

          Shaktikanta Das, the present Reserve Bank Governor at an interview with PTI  on Monday said that the government would have to utilize its structural reforms to get back the bulging downward movement of the economy. He added that there is a need for sustaining the green shoots of the recovery for pulling the present economic scenario from the worst slowdown that has been happening for the past 11 years. He told that the settling down of the outbreak of coronavirus in China needed t to be closely monitored by every policymaker. 

          

          He has positive feedback on the recent Union Budget for 2020-21 put forward by Finance Minister Nirmala Sitharaman. He pointed out that the recent steps have created a facilitating ecosystem for restoring demand and consumption. It is necessary for the Indian government to commit to and begin the land and labor reforms, bring efficiencies in Agri marketing and focus on skill development. In order to cut the interest rates on five consecutive occasions, the RBI used the space that was opened up by the moderation in inflation.

         

          Das added that the government has to see how durable are the positive developments before they pass judgment. From the reports, it is transparent that by investigating the projection which they have given, things will start improving in the 2021-22 financial year. The account says that the projected growth is 6 percent of GDP growth against 5 percent for fiscal that ends in March. 

         

          Das is expecting the Budget has attempted to respond through counter-cyclical measures. There are some structural aspects that need to be taken responsibly. Some of those things have been mentioned in the 2020-21 Union Budget and the government is looking forward to more such structural changes in the Indian economy. More specifically, he mentioned the structural reforms as agricultural marketing to make supply chain and value chain.