"Economic revival to continue 'unabated'; rising Covid cases a concern, but lockdowns unlikely"
RBI Governor Shaktikanta Das
Mumbai: The rising COVID-19 infections across the country are a matter of concern, but it may not impact the ongoing economic revival as one does not foresee lockdowns, Reserve Bank Governor Shaktikanta Das said on Thursday.
The economic revival will continue "unabated", Das said, asserting that there is no need for a downward revision of RBI's 10.5 per cent GDP growth forecast for FY22.
Speaking at Times Network's India Economic Conclave, Das said, "We have 'insurance' to protect economic revival like a fast-paced vaccination drive, greater ability among people to follow COVID protocols", and one does not see lockdowns as well.
"The renewed surge in COVID cases in many parts of the country is a matter of concern," the governor said.
"I would feel that the revival of economic activity, which has happened, should continue unabated going forward. My understanding and our preliminary analysis shows that the growth rate next year the 10.5 per cent which we had given would not require a downward revision," he added.
It can be noted that India reported over 50,000 new COVID-19 infections on Wednesday with states like Maharashtra reporting newer highs, and a new strain of virus has also been found.
Some pockets of the country have already resorted to stricter lockdowns in the face of the rising infections. It can be noted that a nationwide lockdown last year led to a deep economic impact and the GDP is set to contract by over 7 per cent in FY21.
"...at this point of time, one does not forsee a kind of lockdown that we experienced last year. Last year, it came as a huge shock," Das said.
The governor affirmed the central bank's commitment to use all its policy tools to facilitate the economic revival from the debilitating impact of the pandemic while ensuring price and financial stability.
It can be noted that after deep rate cuts initially, the RBI has been focusing on a slew of measures uncharacteristic policy measures to help the economic revival as inflation its primary objective became into a point of concern.
Das declined to comment on the inflation trajectory he sees going ahead, asking everybody to wait for the resolution of the Monetary Policy Committee early next month which will have the RBI's outlook.
On the future of the 'V-shaped' growth recovery, he made it clear that the RBI had never used any alphabet to denote the recovery but came out with a number, which is being maintained.
When asked about the bond market, Das said the central bank and the market are in no fight and added that the relationship should be non-combative. He, however, added that the RBI would like for an orderly evolution of the yields curve and no sudden spikes.
The RBI does not want excessive volatilities in the forex market and has been accumulating reserves to protect against the possible impact of the withdrawal of the stimulus measures in advanced economies, Das said.
At present, India's forex reserves are sufficient to cover for 18 months of imports but there is no level of the reserves which the RBI is tracking, Das said, committing to keep the rupee stable.
Das said in the year of the pandemic, India processed 274 crore direct benefit transfer transactions to help the pandemic-affected population.
He said real time gross settlement (RTGS), which is used to transfer large sums of money, has multi-currency capabilities and there is also a scope to explore if its footprint can be expanded beyond the country.
Das said there are no differences with the government over cryptocurrencies and the RBI has conveyed major concerns on the same to the government, which will eventually take a decision on the matter.
Financial sector stability is a major cause of worry which is being assessed as the RBI works on the central bank's digital currency, he said.
Das affirmed that the RBI does not wish to hurt innovation done by the financial technology players and will keep its regulations in sync with their work.
When asked about the budget proposal to privatise two state-run lenders, Das said there had been discussion between the Mint Street and North Block before the budget and after it as well, and added that the process is moving ahead.
The RBI sees the banking landscape divided into four in the future, which will include a few large banks having a pan-India and also foreign presence, some mid-size lenders, small sized banks and the last category will be digital players, he said.
Maintaining health of the banking sector with a strong capital base and ethics-driven compliance culture remains a policy priority for the RBI, he said, adding that the RBI has taken a slew of measures to improve governance at the urban cooperative banks.
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PM should apologise to every Maharashtrian, say sorry for note-ban, anti-farmer laws too: Rahul
Sangli (Maharashtra), Sept 5: Leader of Opposition in the Lok Sabha Rahul Gandhi on Thursday said Prime Minister Narendra Modi should apologise to every Maharashtrian for the collapse of Chhatrapati Shivaji Maharaj's statue in Sindhudurg district, and also say sorry for demonetisation, anti-farmer bills and GST.
Gandhi was speaking at a public meeting here after inaugurating a statue of late party leader Patangrao Kadam.
"I want to ask the prime minister what he is sorry for, is it because the contract to make the Shivaji statue was given to an RSS person who had no merit, or for the corruption in the proces," he said.
With the BJP-Shiv Sena-NCP government in Maharashtra coming under fire over the collapse of the statue last month, the prime minister during his subsequent visit to the state said he apologised to the iconic king, his "deity", and also the people whose sentiments were hurt.
Congress president Mallikarjun Kharge, senior leaders Sushilkumar Shinde and Prithviraj Chavan, and NCP (SP) chief Sharad Pawar attended the function in Sangli, a city in western Maharashtra and a traditional Congress bastion. But ally Shiv Sena (UBT) chief Uddhav Thackeray was conspicuous by his absence. Notably, Sena (UBT) candidate had lost to Congress rebel Vishal Patil in the Sangli Lok Sabha seat.
Modi should answer why all contracts are given only to "Adani and Ambani" and why he was running the government only for "two people", Gandhi further said.
The prime minister has not apologised for the "anti-farmer laws" which were later withdrawn due to protests, he said, and demanded that Modi apologise for demonetisation and the "wrong" Goods and Services Tax.
Gandhi further said the Congress ideology was the DNA of Maharashtra, and assured that he will be present during the coming assembly elections campaign wherever required.
The PM did not visit Manipur which is facing a civil war-like situation as the BJP itself has set the northeastern state on fire, he alleged.
Small and medium businesses were being finished for the benefit of "two people", he said, adding that Adani and Ambani groups cannot generate employment.
Late Patangrao Kadam dedicated his life to the Congress party, Maharashtra and the country, and worked for development and spread of education, the Raebareli MP said.
When Indira Gandhi lost the Lok Sabha election, Kadam stood by her and organised a public meeting even at 2 am, Gandhi noted.
Maharashtra has always been a progressive state, and Chhatrapati Shivaji Maharaj, Chhatrapati Shahu Maharaj, Dr B R Ambedkar and Mahatma Jyotirao Phule showed the progressive path from which everyone draws inspiration, he said.
"The ideology of these towering personalities is the same as that of the Congress. Maharashtra has the foundation and DNA of Congress ideology. Today's politics is a fight between two ideologies. We want social progress and to take everyone along, while the BJP wants development of a selected few," Gandhi said.
The BJP wanted the caste structure to remain the same, finish the Constitution, take over the Election Commission, educational institutions, legal system and bureaucracy, the leader of opposition alleged.
"The only merit needed for joining these institutions is you should be from the RSS," he said.
Reiterating his demand for a caste census, he said it would provide a snapshot of how many people are there in different social strata, and their share in the country's wealth and decision-making.
"But the BJP says no. Now the RSS has said that caste census is necessary....Congress and INDIA bloc will ensure that caste census is carried out at any cost. We need to understand the truth, who benefits from the country's wealth," he said,
In a further dig at Modi for apologising over the collapse of the Shivaji statue, Gandhi said Patangrao Kadam worked for 60 years with transparency, love and genuine efforts, but he never asked for forgiveness. "Forgiveness is asked for when you make a mistake," the Congress leader added.
Kadam's statue will stand strong for the next 50-70 years, he said.
Kharge said on this occasion that the collapse of Shivaji Maharaj's statue was an insult to the state and the country."Kadam's statue has been made by Ram Sutar who is an accomplished sculptor," he noted.
The Opposition's Maha Vikas Aghadi alliance was ready to fight the coming assembly polls in Maharashtra unitedly, Kharge said, adding that "all the real NCP and Shiv Sena leaders are with us, the fake ones are on the other side." If the BJP loses Maharashtra, the Modi government will also be in danger, the Congress chief said while asking people not to get wooed by the state government's Ladki Bahin scheme for women.
Questioning the government's decision to give Z-plus security to Pawar, Kharge said people were the NCP (SP) supremo's security cover and he did not need security from the government.
Sharad Pawar in his speech recalled Patangrao Kadam's contribution in the field of education and development of drought-prone areas of the state.
महाराष्ट्र और पूरा देश जानना चाहता है आखिर प्रधानमंत्री जी ने माफ़ी क्यों मांगी!
— Rahul Gandhi (@RahulGandhi) September 5, 2024
1. बिना merit के RSS वालों को contract देने के लिए
2. मूर्ति के निर्माण में हुए भ्रष्टाचार के लिए
3. या छत्रपति शिवाजी महाराज जैसे पूजनीय महापुरुष का अपमान करने के लिए
कारण कोई भी हो, प्रधानमंत्री… pic.twitter.com/dt3juZ9iZz
