Moneycontrol PRO
you are here: HomeNewsBusiness

Signs of world economy emerging from Covid impact, says RBI Governor Shaktikanta Das

Covid has caused structural changes in the world economy and impacted the poor more, Das said.

September 22, 2021 / 04:40 PM IST
RBI Governor Shaktikanta Das (File image)

RBI Governor Shaktikanta Das (File image)

There are signs that the word is emerging from the impact of coronavirus pandemic, said Reserve Bank of India (RBI) Governor Shaktikanta Das on September 22, while speaking at the 48th AIMA National Management Convention.

Covid-19 is a watershed event in our era, Das said, adding it has caused widespread devastation of lives and livelihoods. There are very few parallels to this shock, Das said.

“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.

India’s financial system has transformed rapidly to support the need of economy, Das said adding recovery has been uneven among different sectors.

Das said the Production linked incentive (PLI) scheme is an important initiative to boost manufacturing sector. “It is necessary that sectors and companies which benefit from the PLI utilise this opportunity to further improve efficiency,” Das said.

Das stressed the need for better technology in the post pandemic world.

Governor highlighted that a dynamic and resilient financial system is at the root of a stronger economy and India's financial system has transformed rapidly to support the growing needs of the economy.

"While banks have been the primary channels of credit in the economy, recent trends suggest increasing role of non-bank funding channels. Assets of non-bank financial intermediaries like NBFCs and mutual funds have been growing; funding through market instruments like corporate bonds has also been increasing," Das said.

According to him this is a sign of a steadily maturing financial system – moving from a bank-dominated financial system to a hybrid one.

Substantial progress has been made to fortify internal defence mechanism of financial institutions to identify, measure and mitigate risks and this is a continuing process and efforts by all stakeholders have to be sustained, Das said.

Dinesh Unnikrishnan
Dinesh Unnikrishnan is Deputy Editor at Moneycontrol. Dinesh heads the Banking and Finance Bureau at Moneycontrol. He also writes a weekly column, Banking Central, every Monday.
first published: Sep 22, 2021 03:25 pm