Showing confidence in India’s economic recovery, Reserve Bank of India Governor Shaktikanta Das said that the growth projection of 10.5 percent for the next financial year would not have to be revised given the strong economic recovery of the country.
Speaking at the India Economic Conclave, Das said that now the world knows the dangers of the Covid-19 pandemic and it is not as in the case of 2020 when there was complete uncertainty.
“The revival of economic activity which has happened should continue unabated going forward. My understanding and our preliminary analysis show that the growth rate in next year, which is at 10.5 percent which we had given could not require, I repeat, would not require a downward revision,” he said.
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On the recent frenzy bond market and the surge in the bond yields globally, the Governor cautioned that disorderly yield curve evolution will act as an impediment for growth and will undermine the process of economic recovery, not just in India but globally.
Regarding the proposed privatization of state-run banks, Das said that the central bank is discussing the privatization of public sector banks with the center, adding that the process will move on.
He said that a healthy banking sector, with a strong capital base and ethics-driven governance, remained a policy priority.
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SOURCE-IANS
