'Indian economy recovered stronger than expected': RBI Governor Shaktikanta Das
- RBI Governor Shaktikanta Das said that Indian economy needs to be watchful of demand sustainability after the festive season
- RBI remains committed to maintain orderly functioning of financial markets, he said
- "Capital account convertibility will continue to be approached as a process," Das said
Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said that India's economy has recovered stronger than expected from the impact of the coronavirus pandemic, however, it is still necessary to be watchful of demand sustainability after the end of the festival season, PTI reported.
“We need to be watchful about the sustainability of demand after the festivals and a possible reassessment of market expectations surrounding the vaccine,” he said.
Das was speaking at the annual day event of Foreign Exchange Dealers' Association of India (FEDAI). He that said there are downside risks to growth across the world and so in India, as well.
“After witnessing a sharp contraction in the economy by 23.9 per cent in Q1 and a multi-speed normalisation of activity in Q2, the Indian economy has exhibited stronger than expected pick-up in momentum of recovery,” Das said.
The RBI Governor affirmed to stay committed to maintain orderly functioning of financial markets to the next trajectory amid the pandemic.
"Capital account convertibility will continue to be approached as a process, rather than as an event," he said.