RBI Governor Shaktikanta Das today said that the focus must shift to capitalise major farm reforms while leveraging IT, communication, and power sectors for growth. He added that there is a need to take a medium-term perspective on the economy. He also said that the questions on recovery from Covid haunts day in and day out. In an online session conducted by the industry body Confederation of Indian Industry (CII), HDFC Chairman Deepak Parekh urged Shaktikanta Das to not extend the moratorium as it will hurt banks. Deepak Parekh added that those who have the capacity to pay are also not paying. Replying to the HDFC Chairman, the RBI Governor said that he cannot comment on the moratorium but he has noted it.
Five major dynamic shifts of economy
Shaktikanta Das further listed five major dynamic shifts in the Indian economy. He said that fortunes are shifting in favour of the farm sector. Besides, the changing energy mix in favour of renewables, leveraging information and communication technology, a shift in supply and value chain, and infrastructure as a force multiplier of growth are likely to take the Indian economy to new heights.
Private firms can be game-changer
Further, Shaktikanta Das underlined that private enterprise and investment will be a game-changer. He added that the promotion of young firms and startups will help maximise employment and economic opportunities in the country. Speaking about the supply chain, the RBI Governor said that in a competitive market, an economic and efficient supply chain can enhance economic welfare.
Meanwhile, in July’s Financial Stability report published recently, RBI governor Shaktikanta Das said that the challenges that lie ahead have to be addressed with the overarching objective of preserving long term stability of the financial system, which is critical for nurturing the recovery. He also said that in the post-pandemic phase, the focus would be on the calibrated unwinding of regulatory and other dispensations. Shaktikanta Das added that the financial sector stability is a prerequisite for giving confidence to businesses, investors, and consumers, hence the system needs to be extremely watchful and focused.