- Tuesday, April 30, 2024
By: Shubham Ghosh
SHAKTIKANTA Das, the governor of Reserve Bank of India, the country’s central bank, said on Tuesday (16) that there are signs that consumption demand is making a strong comeback.
He said the recent cut in excise duty and value-added tax by India’s states will augment people’s purchasing power, Moneycontrol reported.
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“This would encourage firms to expand capacity and boost employment and investment amidst congenial financial conditions,” Das said while speaking at the SBI Banking and Economics Conclave on Tuesday.
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“Are we at the cusp of a virtuous feedback loop where increased demand impulses will move in lockstep with commensurate supply response and ensure sustained growth of the economy? There are reasons to be optimistic on this front,” he said.
He added that banks in particular should be investment-ready when the investment cycle revives. Das also said that the public sector has an important role to play.
The RBI governor also said that the current trend of investment-led recovery can get more boost if public expenditure plays a big role.
He said India’s place in the global economy will be built on a sound, stable and resilient financial system as the world emerges from the coronavirus pandemic.
“Banks and NBFCs (non-banking financial companies), being the power engines of our economy, must undergo continual metamorphosis to accelerate this transformational journey,” he said.
Das also lauded on the occasion India’s progress on vaccines, calling it a “shining example of scientific capabilities” and praised the country’s tech entrepreneurs saying it has emerged as a top performer in the startup landscape, attracting billions of capital from abroad.
