Indian economy exhibited stronger than expected pick up in momentum of recovery: RBI Governor
Nov 26, 2020
Mumbai (Maharashtra) [India], November 26 : The Indian economy has exhibited stronger than expected pick up in the momentum of the recovery, said Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday.
"The Indian economy has exhibited stronger than expected pickup in the momentum of recovery...We need to be watchful about the sustainability of demand after the festivals and a possible re-assessment of market expectations surrounding the COVID-19 vaccine," said Das while speaking at the 4th Annual Day of Foreign Exchange Dealers' Association of India (FEDAI).
The global economy has also witnessed a stronger than expected rebound in activity in Q3. The IMF has accordingly revised its assessment for global growth in 2020 to a less severe contraction than what was assessed in June 2020, the RBI Governor added.
"Given that we are still amidst the pandemic, where near-term macro concerns dominate the discourse, let me start with a few words on the macroeconomic outlook and financial market conditions," said Das.
He virtually addressed the 4th FEDAI Annual Day.
"Domestic financial markets conditions witnessed serious stress and dislocation as COVID-19 pandemic unfolded. RBI acted proactively and nimble footedly to ease financial market conditions and mitigate risks with a slew of conventional and unconventional measures," said Das.
"Inputs from market players and stakeholders helped us undertake a slew of measures to contain the impact of COVID-19 on the economy and financial markets," said Das.
"Faced with an unknown crisis, which brought the global economy to a sudden stop, the recent policy discourse has been dominated and rightly so, by the impact of the COVID-19 pandemic," he added.
The year 2020 has been one like never before. Faced with an unknown crisis which brought the global economy to a sudden stop, recent policy discourse has been dominated, and rightly so, by the impact of the pandemic. Despite this, regulatory and institutional reforms in the country have moved the domestic financial markets to the next trajectory, the RBI Governor stated.
"Cutting across market segments, these reforms are ushering in a simplified, principle-based regulatory framework that seeks to broad-base markets by easing access, enhancing participation, facilitating innovation, protecting users and promoting fair conduct. Today, I would like to discuss the imperatives and the building blocks of the recent reforms placing them in the context of the big picture of a modern and efficient financial market, equipped to support the aspirations of an open and integrated economy," he added.
