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RBI recipe for sustainable growth

Thursday 23rd September, 2021

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RBI RECIPE FOR SUSTAINABLE GROWTH I B el RBIrecipe for sustainable growth PRESS TRUST OF INDIA NEW DELHI, 22 SEPTEMBER Reserve Bank Governor Shaktikanta Das today underlined the need for a big push toinfrastructure investment, education and digital economy to achieve sustainable growth and generate jobs in smaller cities. "As we recover (from the pandemic), we must deal with the legacies of the crisis and create conditions for strong, inclusive and sustainable growth. Limiting the damage that the crisis inflicted was just the first step; our endeavour should beto ensure durable and sustainable growth in the postpandemic future," the RBI Governor said. The Governor made these comments while speaking at the 48th AIMA National Management Convention through video conferencing. Sustainable growth, Das said, should entail building on macro fundamentals via medium-term investments, | PIG F USM TV INVESTMENT NEEDVED AN U A' ' A big push to investment in healthcare, innovation, physical and digital infrastructure will be required. We should also continue with further reforms in labour and product markets to encourage competition and dynamism, and to benefit from the pandemicinduced opportunities. SHAKTIKANTA DAS RBI GOVERNOR sound financial systems and structural reforms. "Towards this objective, abigpushto investment in healthcare, education, innovation, physical and digital infrastructure will be required. We should also continue with further reforms inlabour and product marKketsto encourage competition and dynamism, and to benefit from the pandemicinduced opportunities," he said. In addition, the warehouse and supply-chain ' 1 1 infrastructure will be criticalto bolstering value addition and productivity in the agriculture and horticulture sector, Das said, adding this will create employment opportunities in semi-urban and rural areas and promote inclusive growth. The production linked incentive (PLI) scheme announced recently by the government for certain sectors was an important initiative to boost the manufacturing sector, he said, adding the gains were likely to be durable and not a one-off. Noting that the pandemic has affected the poor and the vulnerable more in emerging and developing countries, Das said: "Our endeavour should be to ensure livable and sustainable growth in the postpandemic future. Restoring the durability of private consumption, which has remained historically the mainstay of aggregate demand will be very crucial going forward". More importantly, Sustainable growth should entail meeting on macro fundamentals via medium-term investments, sound financial systems and structural reforms, he added. Needless to add that inclusive growth in the postpandemic world willrequire cooperation and participation of all stakeholders, Das said, adding collaborative effort of various stakeholders is helping accomplish a seemingly difficult task of accelerating the pace of vaccination.