Why GDP will Remain in Negative Territory, Read What RBI Governor Said
New Delhi : In his third press conference in two months, Reserve Bank of India (RBI) Governor Shaktikanta Das is addressing the media today i.e. on Friday. During this, RBI Governor said GDP will Remain in Negative Territory.
Lockdown Reduces Both Demand and Production
RBI Governor Shaktikanta Das said ‘the simultaneous fiscal, monetary and administration measures will create conditions for a gradual revival of activity in the second half of 2020-2021.’ He said ‘GDP growth is estimated to remain in the negative territory because lockdown has reduced both Demand and production, it will catch some pick up in the second half.’
“We expect normalcy to return in the second half of the year as more relaxations are announced. Much will depend on how the Covid-19 curve flattens,” Das said.
RBI is at the Forefront to COVID-Related Challenges
The RBI is at the forefront and will continue taking measures necessary to meet Covid-19 related challenges, says Governor Shaktikanta Das. “RBI will remain vigilant and use all its instruments and even fashion new ones to keep the financial system smoothly functioning, ensure access to all and to preserve financial stability.”
This was his third press conference in two months. His briefing came days after Union Finance Minister Nirmala Sitharaman held a series of five press conferences to announce details of India’s Rs 20 lakh crore economic package to cushion the impact of the coronavirus pandemic.