Mumbai (Maharashtra) [India]: India has the potential to grow at a reasonably high pace in the post-pandemic scenario, said Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday.
Addressing the SBI Banking and Economics Conclave 2021, the RBI Governor said that numerous high-frequency indicators suggest that economic recovery is now taking hold. “There are signs that consumption demand, triggered by the festive season, is making a strong comeback. This should encourage firms to expand capacity and boost employment and investment amidst congenial financial conditions,” said Das.
He noted that the recent cut in excise duty on petrol and diesel by the Central government and in value-added tax (VAT) by several state governments will augment the purchasing power of the people, which, in turn, he said, “will create space for additional consumption.”
“I firmly believe that India has the potential to grow at a reasonably high pace in the post-pandemic scenario,” said Das.
“Numerous high-frequency indicators suggest that economic recovery is now taking hold… While the economy is picking up, it is yet to cover a lot of ground before it gets broad-based and well-entrenched,” he said further.
The RBI governor added that with a scale of vaccination in India, “that is among the highest in the world,” the country is poised to lead the fight against COVID-19.