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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31 students test positive during anti-drug screening drive in educational institutions in Bengaluru
Bengaluru (PTI): Thirty-one students tested positive during an anti-drug screening drive conducted in educational institutions in Vijayanagar area of the city, police said on Thursday.
The drive was conducted as part of Karnataka State Police department's newly introduced initiative called "Sanmitra" aimed to address the serious issue of drug addiction, which has been severely impacting the youth across the state, they said.
This initiative aims to adopt a transformative approach to find solutions and take compassionate steps towards building a drug-free society, police said.
According to police, as part of this directive, on March 4, under the leadership of DCP West Division Yatheesh N, inspections related to drug consumption were conducted within the limits of Vijayanagar Sub-Division police stations under Bengaluru City Police Commissionerate.
With the consent and no-objection certificates obtained from the management of six educational institutions and two hostels, inspections and checks were carried out.
"Urine samples were collected from more than 1,200 students, out of which 585 samples were randomly tested, and 31 samples were found to be positive," police said in a statement.
The operation was conducted with the full cooperation of officers and staff of local police stations, along with doctors, technicians, and staff from nearby hospitals, police said.
Necessary arrangements will be made to provide counseling with mental health professionals and to ensure required medical support for those in need, they said.
The identity and family details of individuals tested will be kept strictly confidential, police assured.
