COVID Impacted Economy, May See Gradual Recovery: RBI Governor Shaktikanta Das

Addressing the FICCI National Executive Committee Meeting, the central bank chief said that the country is still reeling under the impact of Covid-19 and will gradually come back on normal growth path.

New Delhi: The recovery of the economy reeling from the impact of Covid-19 pandemic will be gradual, RBI Governor Shaktikanta Das said on Wednesday.

Addressing the FICCI National Executive Committee Meeting, the central bank chief said that the country is still reeling under the impact of Covid-19 and will gradually come back on normal growth path.

He, however, said that things have considerably improved in the second quarter after adverse impact the pandemic had on economic activity in the first quarter.

Citing World Bank assessment, Das said that recovery globally would take a longer route as it is not fully entrenched.

On its part, Das said, RBI has persistently done large liquidity infusion and this has ensured large borrowing by the government at low rate and in non-disruptive manner. The liquidity infusion in other sectors have also worked well.