Highlights from RBI governor’s keynote address to BCCI

Feb 25, 2021 By: Prabhjote Gill

Manufacturing sector is spearheading growth recovery

According to RBI Governor Shaktikanta Das, the government’s new PLI schemes aim to make India an integral part of the global value chain. Credit: BCCL

Das pegged the MSME sector in India as the growth engine of economy

It has a vast network of around 6.33 crore enterprises which contribute to 58 percent of exports. Credit: BCCL

“Corporates need to invest more in the healthcare sector,” said the RBI Governor

The focus should be on enhancing supply at every level of the value chain in a cost effective manner. Credit: BCCL

RBI backs PLI schemes as important for India’s export push

“Domestic industry needs to develop its strength by focusing on quality and export competitiveness in order to remain viable in the long run,” said Das. Credit: Unsplash

RBI believes that free trade agreements (FTAs) needed with strategically important economies

But, warns that India needs to take into account the geopolitical landscape of the post pandemic world. Credit: BCCL

Das said that there is scope for having separate trade agreements with UK and the EU

FTAs with these economies can boost bilateral and investment relations as well as collaboration on scientific research and climate change. Credit: Pixabay

RBI’s digital currency to be unveiled ‘very shortly’

The central bank has certain concerns with respect to cryptocurrencies and issues are being addressed internally. Credit: Unsplash

“Fuel price hike has a cost-push factor,” said Das

There is a need for co-ordinated action between the centre and states on reduction in taxes on fuel prices. Credit: BCCL

RBI says its working on improving India’s regulatory architecture for the microfinance sector

It had earlier expressed its interest in creating a level playing field for MFIs. Credit: RBI

Refining regulatory architecture on asset reconstruction companies on cards

“There is space for one strong ARC set up by banks,” said Das. Credit: BI-India

RBI now has a precise idea of build up of stressed assets in banks

“Indian financial sector is in a much better place now than earlier,” said the RBI Governor. Credit: BCCL