5% GDP growth a 'surprise', says RBI governor Shaktikanta Das
New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday termed the low GDP growth of 5 percent as a "surprise" but expressed confidence that the economy will look up with a host of measures taken by the government.
He further said that the RBI has been cutting rates to give a boost to the economy as slowdown was visible for past few months.
The RBI slashed benchmark interest rate four times consecutively since January 2019. The central bank reduced the repo (short term lending) rate by 1.10 percentage points during the year.
"I think with right measures taken, things should improve. It's a positive trend that the government is responding very fast and I don't think we have heard the last from the government with regard to dealing with the current economic situation ... My expectation is that it will be a continuous process and they would definitely be dealing with other challenges," he told news channels.
The government announced a slew of measures in three dosages which include a special window for real estate, export incentives, bank consolidation and sops for MSMEs and the automobile sector.
With regard to structural reforms, he said the RBI has already pointed out in its annual report.
"I think one major thing would be agriculture marketing. Definitely, I would expect some action from the government with regard to reforms in agricultural marketing," he said.
Expressing concern over the first quarter GDP numbers, the RBI Governor said the numbers definitely looked much worse because the RBI had projected 5.8 percent.
"I think almost everybody had projected not below 5.5 per cent or so, but the number 5 per cent is a surprise," he said.
He also said the second quarter growth of all advanced economies was lower than the first quarter so there is a deceleration.
"But again I am not trying to justify our slowdown through the prism of the global slowdown although global slowdown does impact growth and results in slowdown we have domestic issues also," he said.
Asked when will the economy see revival, Das said it is difficult to make an estimate as there are many things which are still playing out.
"Now for example the Saudi oil crisis it was something totally unanticipated. The trade issue between two largest economies some statements here it appears that they are going on the brink but then they pull back...so much of uncertainty happening all around," he said.
How various factors play out in the second quarter, the RBI will analyse and make assessment, he added.
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RR beat RCB by six wickets in IPL
Guwahati (PTI): Blistering fifties by Vaibhav Sooryavanshi and Dhruv Jurel powered Rajasthan Royals to a six-wicket win over Royal Challengers Bengaluru in their IPL match here on Friday.
Sent in to bat, RCB rode on a fighting half-century by skipper Rajat Patidar (63) to post 201 for 8.
Virat Kohli (32), Romario Shepherd (22) and Venkatesh Iyer (29) also chipped in with useful contributions.
In reply, Sooryavanshi (78 off 26 balls) and Dhruv Jurel (81 not out off 43 balls) shared a 37-ball 108-run partnership for the second wicket to set the platform. Krunal Pandya (2/30) tried to bring them back with back-to-back wickets.
But Jurel, in the company of Ravindra Jadeja (24), completed the task with another 68-run stand, with two overs to spare.
For RR, Jofra Archer (2/33), Ravi Bishnoi (2/32) and Brijesh Sharma (2/37) took two wickets.
Brief scores:
Royal Challengers Bengaluru: 201 for 8 in 20 overs (Rajat Patidar 63; Jofra Archer 2/33, Ravi Bishnoi 2/32, Brijesh Sharma 2/37).
Rajasthan Royals: 202 for 4 in 18 overs (Vaibhav Sooryavanshi 78, Dhruv Jurel 80 not out; Krunal Pandya 2/30, Josh Hazlewood 2/44).
