|
|
|
Consumption demand making strong comeback: RBI Guv
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 17 Nov, 2021
Reserve Bank of India Governor Shaktikanta Das on Tuesday said that
consumption demand triggered by the festive season is making a strong
comeback.
Speaking at the eighth SBI Banking & Economics
Conclave, he said: "There are signs that consumption demand triggered by
the festive season is making a strong comeback."
"This would encourage firms to expand capacity and boost employment and investment amidst congenial financial conditions."
According
to Das, the recent cut in excise duty on petrol and diesel by the
Centre and in value-added tax (VAT) by several state governments will
augment purchasing power of people, which in turn, will create space for
additional consumption.
Besides, he said that while it is
"heartening to note" that the economy is gradually getting back on its
feet after a devastating second wave, recovery has progressed in an
uneven manner.
"Contact-intensive services are still to regain
the lost capacity despite rapid improvement in the recent period. The
Q1: 2021-22 data on GDP revealed that there still exists significant gap
in both private consumption and investment, relative to their
pre-pandemic levels in 2019-20."
"So, while the economy is
picking up pace, it is yet to cover a lot of ground before it gets
broad-based and entrenched. This points to the need for sustained
impetus so that growth could return to, or better still, exceed the
pre-pandemic trend."
Furthermore, he said India has potential to grow at a reasonably high pace in the post-pandemic scenario.
"Several
factors are stacked in India's favour. First, India as an emerging
market and developing economy has significant potential to catch up with
the rest of the world supported by favourable demographics, improving
skill base and strong domestic demand."
"Second, the Government
is providing necessary support - especially through capital expenditure
and reforms in various sectors like infrastructure, manufacturing and
telecom, apart from other institutional changes to boost productivity,
ease supply constraints and improve business environment."
"Third,
the pandemic has opened new opportunities of growth in digital and
green technology and also on account of resetting of global supply
chains that could be advantageous to India. Fourth, exports have been a
bright spot during the recent months and are likely to benefit further
from global economic recovery."
In the presence of such enabling
conditions and supportive policies, he said that India has a unique
opportunity to step up growth and emerge from the pandemic.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|