Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More

GDP growth to remain negative in FY 20-21, says RBI Governor Das

He stated that if inflation trajectory evolves as expected, more space will open up to address risks to growth

May 22, 2020 / 12:17 PM IST
RBI Governor Shaktikanta Das (PTI)

RBI Governor Shaktikanta Das (PTI)

The GDP growth in FY2020-21 is expected to remain in the negative category, with some pick up in the second half, Reserve Bank of India Governor Shaktikanta Das said on May 22.

"There will be a gradual revival of activity and demand by the second half of FY21. MPC (monetary policy committee ) believes it is essential to instil confidence at this point of time," Das told media.

The country’s top banker also announced a 40 basis points cut in repo rate to 4 percent.

Here's the full text of RBI Governor Shaktikanta Das' May 22 conference

"The monetary policy committee (MPC) unanimously voted for a 40 basis points policy repo rate cut," he said, speaking to the media first time after the government announced a Rs 20-lakh-crore economic stimulus package.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

The committee voted 5:1 in favour of the cut, Das said, adding the decision was taken at an off-cycle meeting of the MPC that was on for the past three days.

If inflation trajectory evolved as was expected, more space would be opened up to address risks to growth, Das said, keeping the doors open for further cuts.

Follow our LIVE blog on the RBI press conference

This is the RBI governor’s third press conference since the coronavirus outbreak and the subsequent lockdown in March.

In his press meetings on March 27 and April 17, the RBI governor announced a series of measures to ease liquidity pressure in the banking system and cushion the economy from the COVID-19 downturn.

Check our complete coverage on RBI's May 22 announcements here
Moneycontrol News
first published: May 22, 2020 10:43 am

stay updated

Get Daily News on your Browser
Sections