Mumbai: The Reserve Bank of India (RBI) Governor Shaktikanta Das said Wednesday that the Covid-19 pandemic had significantly reduced the country's overall inclusiveness.
Das gave a keynote speech at an event of the All India Management Association (Aima), calling for more inclusive and sustainable growth.
He said the pandemic has further impacted the poor and vulnerable, especially in emerging and developing countries. “Daily salary earners, services and workers in the informal sector have been hit hard. Their employment and income opportunities have been reduced. The permanent damage from pandemics in these segments is comprehensive. It is a serious concern for growth. In the medium to long term, both efficiency and fairness are very important for sustainable growth and macroeconomic performance. “
The effects of a pandemic can be much more asymmetric by affecting more vulnerable segments. “The Covid-19 pandemic is no exception. In the country, the contact-intensive services sector, which employs many informal, low-skilled, low-wage workers, has been hit harder. In countries and developing countries, lack of access to health care is disproportionately affecting poor households. Even education provided online during a pandemic lacks the necessary skills and resources. As a result, we have excluded low-income households. Overall, there is evidence across countries that pandemics may have significantly reduced inclusiveness, ”says Das.
“As we recover, we need to address the legacy of the crisis and create conditions for strong, inclusive and sustainable growth.”
Limiting the damage caused by the crisis was only the first step. Our efforts should be to ensure lasting and sustainable growth in the post-pandemic future, “he said.