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V, U, L, W or K? This is what RBI governor thinks the nature of India's economic recovery could look like

According to Das, sectors that will register the quickest recovery include Agriculture and allied activities, fast moving consumer goods, two wheelers due and passenger vehicles and tractors, drugs and pharmaceuticals, and electricity generation, especially renewables.

October 09, 2020 / 07:38 PM IST

Reserve Bank of India (RBI) Governor Shaktikanta Das on October 9 said he expects the economic recovery in the aftermath of COVID-19 to predominantly be a three-speed recovery, with individual sectors showing varying paces, depending on sector-specific realities.

"There is currently an animated debate about the shape of the recovery. Will it be V, U, L, or W? More recently, there has also been talk of a K-shaped recovery. In my view, it is likely to predominantly be a three-speed recovery, with individual sectors showing varying paces, depending on sector-specific realities," he said.

In a V-shaped recovery, after the economy suffers a sharp decline, it then recovers with similar intensity. Such recoveries are generally driven by a significant shift in economic activity caused by rapid readjustment of consumer demand and business investment spending.

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