NEW DELHI: Shaktikanta Das, Governor, Reserve Bank of India (RBI), said that the Indian economy’s recovery momentum has been stronger than expected after the 23.9 per cent Gross Domestic Product (GDP) contraction in the April-June quarter this year. Speaking at the annual day event of Foreign Exchange Dealers’ Association of India (FEDAI), which was held virtually, Das mentioned that the heavy contraction in quarter one can be attributed to the near-complete freezing of all economic activities due to the lockdowns enforced in the wake of the COVID-19 pandemic.
Das mentioned that the nation needs to be watchful of the demand momentum sustaining after the festivities as well. He termed 2020 as a year like never before, which brought the global economy to a sudden stop as the world faced an unknown crisis. Adding that advanced economies like that of Europe are also facing a surge in COVID-19 cases, which can affect global growth, he warned that rising infections in parts of India can create downside risks to gained growth.
In his address, Das commented, “The Reserve Bank remains committed to fostering orderly functioning of financial markets and will continue to evaluate incoming information having a bearing on the financial markets and act, as needed, to mitigate any downside risks.”