Economic recovery now taking hold, says RBI Governor Shaktikanta Das

Tribune News Service

New Delhi, November 16

RBI Governor Shaktikanta Das on Tuesday said the economy has the potential to grow at a reasonably high pace in the post-pandemic scenario due to numerous macro indicators that suggest the recovery is now taking hold.

Cryptocurrency could pose threat

Expressing concern over cryptocurrencies, RBI Governor Shaktikanta Das said there are “far deeper issues” involved in virtual currencies that could pose a threat to the country’s economic and financial stability.

Based on this belief, the RBI has not changed its prediction of 9.5% GDP growth during the current fiscal though many economists and rating agencies have revised their forecasts downwards between 8.5 and 10%.

Addressing the 8th SBI Banking and Economic Conclave, he asked banks to be investment-ready when the investment cycle picks up, which the RBI has indicated, will begin from the next fiscal.

At the same time, the RBI chief said private capital investment is important for economic growth to kick into high gear.

Lauding the tech entrepreneurs, the Governor said the country has emerged as a top performer in the startup landscape, attracting foreign capital in billions.

Das also pointed out that agriculture and construction together account for nearly 56% of the total employment in India but their contribution to GDP is 25%. Thus, a large segment of the workforce is stuck in lower productivity areas constraining our growth potential, he said.