India’s GDP to grow at 7.4 per cent in 2020-21, best among G20 nations: RBI Governor Shaktikanta Das

New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday (April 17) addressed the media. This is the RBI Governor’s second press briefing since the coronavirus COVID-19 outbreak began in India. In his previous address on March 27, he had announced a rate cut of 75 basis points.

Here are the key points from his today’s address: 

RBI to announce new measures to maintain adequate liquidity in the system, facilitate bank credit flow, ease financial stress.

Surplus liquidity in the banking system has increased substantially as a result of central bank actions.

No downtime of the internet or mobile banking during lockdown; banking operations normal.

The contraction in exports in March at 34.6% much more severe than the global financial crisis of 2008-09.

Automobile production, sales declined sharply in March; electricity demand has fallen sharply.

Impact of COVID-19 not captured in IIP data for February.

India is expected to post a sharp turnaround in 2021-22.

IMF projection of 1.9% GDP growth for India is highest in G20.

Banks, financial institutions have risen to occasion to ensure normal functioning during the outbreak of thee pandemic.

RBI monitoring situation developing out of COVID-19 outbreak.

LTRO-2.0 to involve Rs 50,000 cr to begin with.

For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround & resume its pre-COVID, pre-slowdown trajectory by growing at 7.4% in 2020-21.

Since March 27, the macroeconomic and financial landscape has deteriorated precipitously in some areas, but light still shines through bravely in some others.