RBI Governor’s Addresses Nation on Economic Measures
RBI governor Shaktikanta Das in his address today announced more measures to boost economy. In his status check of Indian economy he stated, that the industry production has gone down by 17% and Inflation surged to 8.6% in April However there has been 3.7% increase in food production.
“India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at 487 billion US dollars,” he said. But the GDP remains in negative category as the impact of Covid has been more severe than anticipated. The governor was hopeful that combination of fiscal economic and administrative will revive economy by second half of 2021. He is of the view that headline inflation in first half of 2020 will be stay intact but by Q3 and Q4 it may fall below the target of 4 percent.
Agriculture and allied activities have given a beacon of hope for the country. A ray of hope is also brought in from the normal south-west monsoons this year, says RBI Governor.
RBI Booster Measures include –
- Reverse repo rate down to 3.35 to maintain an accommodative stance
- Repo rate cut to 4% from 4.4%
- RBI has decided to roll over the facility of Rs 15,000 crore for another 90 days in SIDBI
- RBI governor announces some benefits for exporters. Term Loan moratorium extended by three more months.
If the inflation trajectory evolves as per the expectation, some room will open to look at risks to growth and take measures said the Governor. RBI governor also announced several measures to help banks in the wake of the crisis. He then went on to say that the RBI, like other central banks in the country, will ensure that the country’s economy is back on its feet.