Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Register now for Commodity Ki Paathshala webinar on ‘FPOs & Agriculture Marketing-The Beginning of a New Era’ on January 22, 4pm

RBI MPC may consider coronavirus impact on Indian economy: Report

The report titled "India: Growth and inflation targeting review", Radhika Rao, Economist at DBS Bank noted that the impact on India is felt through supply chain disruptions from China as well as regional players, who in turn are net importers from China.

February 25, 2020 / 02:00 PM IST

The Monetary Policy Committee (MPC) of the Reserve Bank of India is likely to consider the developments around COVID-19, which has resulted in supply chain disruptions from China, Singapore's DBS Bank said in a report on Tuesday.

The report titled "India: Growth and inflation targeting review", Radhika Rao, Economist at DBS Bank noted that the impact on India is felt through supply chain disruptions from China as well as regional players, who in turn are net importers from China.

"Temporary price increases are likely to be accompanied by production delays if the pain spills over into 2Q20 (April-June)," the report said adding that "the MPC is also likely to consider developments around COVID-19".

The coronavirus outbreak has brought a large part of the world's second-largest economy China to a standstill and its impact has been felt across industries.

On January 30, the World Health Organization (WHO) declared the coronavirus (COVID-19) outbreak a global health emergency.

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

On economic growth, the report said, the Indian economy is in the midst of "bottoming out" -- to reach a lowest or worst point before beginning to rise or improve.

"For 4Q19, lead data has been mixed, with our momentum indicator signalling a modest slowdown from quarter before. We expect growth to stand at 4.4 per cent y-o-y followed by stabilisation in 1Q20 and a gradual pick-up, thereafter, helped also by base effects," the report said.

Headline GDP growth has slowed from 8 per cent y-o-y in June 2018 to 5 per cent in June 2019 to 4.5 per cent in September 2019.

"Sub-par growth numbers are likely to raise pressure on policymakers to act," the report said.

On the Reserve Bank of India reviewing the retail inflation targeting framework, the report said "no sweeping changes are likely".

"With the inflation-targeting framework being still relatively new, authorities are likely to keep the broad contours unchanged to allow the framework to stabilise, age and gain credibility," the report noted.

RBI Governor Shaktikanta Das has said that the Reserve Bank of India is reviewing the retail inflation targeting framework behind monetary policy decision as well as its effectiveness and also plans to hold stakeholders consultations including with the government in June.
PTI
first published: Feb 25, 2020 01:57 pm

stay updated

Get Daily News on your Browser
Sections