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The Reserve Bank Governor Shaktikanta Das said on Friday that India is expected to grow at 1.9 per cent as estimated by the International Monetary Fund (IMF). Even as global recession since the great depression.
In a digital press conference, Das said that the contraction in exports at 34 per cent has turned out to be much worse than the 2008 global financial crisis and the Great Economic Depression of the 1930s.
“India is among the handful of countries that is projected to cling on, somewhat tenuously, to positive growth rate of 1.9 per cent. This is the highest growth rate among the G-20 economies as estimated by the International Monetary Fund (IMF),” Das said and added “India is expected to post a sharp turnaround and resume its pre-Covid growth trajectory by growing at 7.4 per cent in 2021-22,” .
Admitting that humanity was facing one of its toughest phases, Das said that the Reserve Bank of India has been very proactive and has been monitoring the system closely. “For 2020-21, the IMF projected sizable reshaped recoveries, close to 9 percentage points for the global GDP.
India is expected to post a sharp turnaround & resume its pre-COVID-19, pre-slowdown trajectory by growing at 7.4% in 2020-21,” he said, adding that India can be seen clinging on tenuously to positive growth, amid global recession projections by IMF. “India among handful countries projecting positive growth,” he said.
Adding that the RBI will do what it takes to fix the problem, Das said, “It has been decided to reduce the fixed reverse repo rate under liquidity adjustment facility (LAF) by 25 basis points from 4% to 3.75%, with immediate effect,” he added.
Appreciating the health workers, police staff and other services that were provided at the front line, Das said that banks and financial institutions have risen to the occasion and provided all the essential services.