RBI Governor says global trade rebounding; pitches for policy support for exports sector

MUMBAI: Reserve Bank Governor Shaktikanta Das on Friday pitched for enhanced policy support for the exports sector, given a rebound in global trade.

The external demand is strengthening and the global demand conditions are set to improve further on fiscal stimulus packages and fast progress of vaccination in advanced economies, Das said while announcing the Monetary Policy Committee's (MPC) decision to go for status quo in rates.

"The need of the hour is for enhanced and targeted policy support for exports. It is opportune now to give further policy push by focusing on quality and scalability," he said.

According to him, the conducive external conditions are forming for a durable recovery beyond pre-pandemic levels.

Further, the governor said that India's exports in March, April and May this year have seen an upswing, which is evident of the sector's potential.

It can be noted that Indian exports fell by 7.2 per cent in value terms in FY21, as the world wrestled with the COVID pandemic which had a severe impact to consumption because of the lockdowns and consequently to global trade.

The exports had surged by more than 60 per cent in March to USD 34.45 billion as against USD 21.49 billion in the year-ago period.