Amid the slowdown in the economy, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday that global reasons cannot be attributed solely to the sluggishness in India. He has also said that there are signs of return to investment. The Governor has assured that the central bank will take every necessary step on the issue of sluggishness, inflation, health of banks and NBFCs.
The head of the Reserve Bank has said that the central bank took a premature step in view of the slowdown in growth and interest rates were cut from February. He said besides increasing interest rates, liquidity was increased besides increasing interest rates. Citing a survey of 1,539 companies by the Reserve Bank, he has said that the investment cycle is showing signs of revival.
He said that in order to promote economic growth in the future, the process of cleaning up bookkeeping is going on in banks, companies and NBFCs. When the interest rate was not cut this time, he said, "I do not know why the markets are surprised by the current ban on policy interest rate cuts, this decision is expected to be proved over time."
'Emphasis on manufacturing'
Governor Shaktikanta Das said, 'India should focus on manufacturing and become part of the global supply chain; Spending on infrastructure from the central and state governments is critical for economic growth.
'US-China understanding expected to strengthen'
The RBI governor said, 'There is a need to take steps in a coordinated and time bound manner by all developed and emerging economies to overcome the global economic slowdown. It is hoped that the understanding between the US and China on trade will remain, further strengthened.'
