SME Times is powered by   
Search News
Just in:   • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia  • Europe facing earlier, stronger heatwaves: Climate scientist  • India and Namibia sign two MOUs in fields of health and entrepreneurship  • PM Modi arrives in Delhi after concluding 'productive and successful' 5-nation tour  • ASEAN to keep on consensus, inclusivity: Malaysian official 
Last updated: 25 Jan, 2020  

RBI.9.Thmb.jpg RBI Guv calls for reforms, fiscal boost

RBI.9.2.jpg
   Top Stories
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
» India and OPEC have a unique and symbiotic relationship: Hardeep Puri
» SIP inflows hit all-time high in June, total AUM for equity MF at Rs 74.41 lakh crore
» India set to explore over 2.5 lakh sq kms area in one of largest offshore energy efforts
SME Times News Bureau | 24 Jan, 2020

Reserve Bank of India Governor Shaktikanta Das on Friday said that monetary policy alone cannot support growth and structural reforms and fiscal measures must continue for this purpose.

"Monetary policy, however, has its own limits. Structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth," he said while delivering a lecture at the St Stephen's College here on "Seven Ages of India's Monetary Policy".

He said the government is focusing on infrastructure spending which will augment growth potential of the economy. States should also play an important role by enhancing capital expenditure, which has a high multiplier effect.

Among the most important fiscal measures the government has taken so far is the cut in corporate taxes, apart from a host of sectoral measures.

With retail inflation touching 7.35 per cent in December, the highest in six years, the Governor allayed fears over the current spike in inflation, saying it is triggered due to food prices rise.

He pointed due to the RBI's consistent efforts, inflation has fallen successively and has averaged below 4 per cent since 2017-18, notwithstanding recent up-tick in inflation driven by food prices, especially the sharp increase in vegetable prices, reflecting the adverse impact of unseasonal rains and cyclone.

The efforts, Das said, related to the RBI fine-tuning its operating procedures of monetary policy for effective policy transmission across the financial markets and thereby onto the real economy.

The Governor highlighted the potential growth drivers which, through backward and forward linkages, could give significant push to growth. According to him, these include food processing industries, tourism, e-commerce, start-ups and efforts to become a part of the global value chain.

He said RBI is constantly updating assessment of the economy based on incoming data and survey based forward looking information juxtaposed with model-based estimates for policy formulation.

"This approach helped the Reserve Bank to use the policy space opened up by the expected moderation in inflation and act early, recognising the imminent slowdown before it was confirmed by data subsequently," he said.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter