RBI Governor: India exports down 34.57%, next year growth 7.4%!
Posted on: 17/Apr/2020 3:04:51 PM
The raging coronavirus pandemic, spreading fast far and wide, has been creating havoc throughout the world in all countries including India.
As a preventive measure, during the 1st Phase, the central government imposed lockdown conditions for 21 days throughout the country until 14th April. Industries and other organizations remain closed.
The life of the daily-earners has indeed become a question mark and they are facing extreme hardship!
The Governor of the Reserve Bank of India, Sakthi Kantha Das, announced some concessions such as the request to the banks/financial organizations not to collect the EMIs (Equated Monthly Instalments) for 3 months for the agricultural, House, and vehicle loans and reduction in interest rates.
Despite this, as the impact of the raging coronavirus pandemic has not subsided but it is on the increase! As such, the central government announced the 2nd Phase of the lockdown until 3rd May from 14th April.
In this scenario, the RBI Governor had a session with the press through video-conference. He observed that the Reserve Bank of India has been closely monitoring the impact of the coronavirus. It has also been closely monitoring other aspects such as money circulation, Stack Market, and the banks. RBI is working on policies to improve the economy. The International Monetary Fund (IMF) has estimated the country’s economic growth at 1.89%. If this is compared with the corresponding figures of some of the G20counries, even 1,89% is high enough!
It has been estimated that economic growth in the next financial year will b3 by 7.4%. India is likely to record a growth of 1.9%.
The estimates of the current financial year are dwindling rapidly. Not only India, but other countries in the world are also facing an economic recession.
The economy worth the US $ 9 Lakhs Crores has been affected the world over. Among the G20 countries, usually, India’s growth will be more. However, the Productivity Index has gone down to the level not registered over the last 4 months!
90% of the ATMs in the country are functioning as usual. The RBI Governor informed that the India Export has come down by 34.57%.
Due to the lockdown imposition, the total consumption has gone down by 25% to 30%. The nation’s Internal Productivity has been severely affected.
The foreign exchange reserves currently stand at the US $ 476.5 billion.
India’s Foreign Exchange Reserve is in a healthy position.
RBI has decided to reduce the fixed rate reverse REPO Rate under the liquidity adjustment facility from 4.0 per cent to 3.75 per cent with immediate effect.
During this lockdown imposition, the internet services usage and the net-oriented financial transactions have gone up considerably!
