Interview with Reserve Bank Governor Shakti Kantha Das for Structural Financial Reforms
Monetary policy has its own limits. Structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth, Das said, addressing students of St Stephen’s College, Delhi, his alma Mater.this comes when the advance estimate of GDP has projected nominal growth plunging to a 48-year-low of 7.5 per cent and Real growth hitting an 11-year low of 5 per cent and inflation going up.
The RBI governor has called for prioritising food processing industries, tourism, e-commerce and start-ups and also making the domestic economy a part of the global value chain. Das urged states to play an important role by enhancing capex, which has high multiplier effect and can boost the Centre’s focus on infrastructure spending.