India at cusp of turnaround in fortunes, says RBI governor: Key points

3 months ago 9

NEW DELHI: Reserve Bank of India governor

Shaktikanta Das

on Thursday said that India is at the cusp of turnaround in fortunes with sectors recovering from Covid-induced slowdowns.
Addressing the 185th foundation day of Bombay Chamber of Commerce, Das noted that

manufacturing sector

has shown good recovery and is spearheading growth.
Here are the key points from Shaktikanta Das's speech:
* Fuel price hike has cost-push factor as they have an impact on cost of manufacturing. Hence, there is need for coordinated action between centre, states on reduction in taxes on fuel prices.
* We have precise idea of build up of stressed assets in banks. The financial sector in much better place now than earlier.
* Global GDP is estimated to have contracted by 3.5 per cent during 2020, much higher than 0.1 per cent witnessed during financial crisis of 2008.
* RBI is working towards improving regulatory architecture for micro finance institutions (MFIs).
* Refining regulatory architecture on asset reconstruction companies (ARCs) is on cards.
* Corporate sector needs to invest more in healthcare facilities.
* MSME sector has emerged as growth engine of economy.
* We will continue to support the recovery process by ensuring ample amount of liquidity in the system.

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