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Need to plan for stronger, fairer domestic economy, says Shaktikanta Das

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In the post-pandemic period, global trade will remain vital for faster recovery. Reflecting congenial policy environment and supportive external demand, India's exports have rebounded, said Das
New Delhi: RBI Governor Shaktikanta Das on Wednesday said that there are signs that the world is emerging from the impact of coronavirus pandemic. While speaking at the 48th AIMA National Management Convention, Das said, "Covid-19 is a watershed event in our era. It has caused widespread devastation of lives and livelihoods. There are very few parallels to this shock".
“The pandemic is likely to leave indelible marks on the world economy," Das said, adding that it has affected the poor and the vulnerable more. He further stated that India's financial system has transformed rapidly to support the need of economy and recovery has been uneven among different sectors.
In his address, he highlighted that the pandemic has affected poor and vulnerable more and that there is need to plan for a stronger, fairer domestic economy. Policymakers have no template to navigate Covid crisis, he added.
"Global supply chain is undergoing significant shifts; companies and various authorities have to be nimble enough to capitalise on these opportunities. Automation and robotics will threaten low-skilled workers and those in the contact-intensive sectors. The shift to online have also created new opportunities and challenges for employment-intensive sectors like travel, hotels, restaurants and recreation. Some of these changes are going to stay beyond the pandemic. These structural changes need to be kept in mind while formulating strategies for participative growth process," said Das.
Das further stated how consumption patterns are changing and companies are tweaking supply chains to meet the demand. Talking about growth, Das stated that assets of NBFCs, MFs funding via corporate bonds are growing. He emphasised how India's financial system is moving from bank-dominated to hybrid one.
Second, India's digital momentum is expected to continue with a strong demand in areas such as cloud computing, customer
troubleshooting, data analytics, work place transformation, supply chain automation, 5G modernisation and cyber security capabilities. India has the natural advantage to benefit from the emerging trends in these areas, Das added.
Das went on to talk about vaccine access in the country. He said, "Multilateralism to lose credibility if vaccine access unequal". The RBI governor said the Production linked incentive (PLI) scheme is an important initiative to boost the manufacturing sector. “It is necessary that sectors and companies which benefit from the PLI utilise this opportunity to further improve efficiency,” Das said.
He further added that government's output-linked incentive step will boost manufacturing. As per the RBI guv, fintech, edtech companies are likely to see increased funding. Das mentioned that e-commerce is emerging as another promising sector. Talking about what needs to be done, Das said that a major infra push is needed in various sectors to fuel growth.
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