RBI governor hints at economic revival from COVID-19

Reserve Bank of India (RBI) Governor Shaktikanta Das said on Wednesday that India is at the doorstep of a revival process from the Coronavirus pandemic.

Speaking at an event, Das said that it is very important that the financial entities have adequate capital to support growth. He noted that many of them have already raised capital while others are planning to do the same.

He said that after the pandemic is contained, the government will have to spell out a fiscal roadmap for the country.

Das further said that the fiscal measures taken by the government to deal with the pandemic have so far been well-calibrated and prudent.

"The Central government has provided prudent measures to provide financial support to the weaker sections and small businesses," he said.

"I think post-COVID, once there is the containment of pandemic, the government will certainly have to spell out a fiscal roadmap that India should adopt," das added.

Asked about the stress in the banking sector, the RBI governor said, "We need to build a capital buffer for banks, NBFCs to deal with stress caused by COVID-19".

The RBI governor was speaking at the launch of NK Singh’s book, 'Portraits of Power: Half a Century of Being at Ringside'.

The central government, in order to stop the spread of Covid-19, had imposed a nationwide lockdown in the last week of March which is slowly being lifted phase-wise. The lockdown had resulted in the economy sliding by a record 23.9% during April-June.

(With agency inputs)