Economic recovery likely to be gradual, but RBI battle-ready: Das

Addressing the FICCI National Executive Committee Meeting, Das said economic recovery is not fully entrenched, adding that the GDP data for the first quarter was a telling reflection of how covid-19 affected the economy.

He said the central bank stands battle-ready to take whatever steps are needed for the revival of the economy.

Das also said persistent liquidity measures undertaken by the RBI have ensured borrowing by the government at a low rate and in a non-disruptive manner.

He said the central bank’s efforts have led to the softening of 10 year government securities to the lowest level and that RBI was very carefully monitoring the markets and will take further actions as and when required.

While bank credit growth remains muted, commercial bank investment in bonds, commercial papers, debentures and shares of corporates between April and August have increased to ₹5,615 crore as against a decline of ₹32,000 crore in the same period last year, he added.

"There are five key areas that I propose to focus on that I think will determine stability and step up India's growth in the medium term. First is human capital with specific emphasis on education and health; second is productivity; exports which is leading to India's role in the global value chain; fourth tourism; food processing associated productivity areas," said Das.