There are signs that the word is emerging from the impact of coronavirus pandemic, said Federal Reserve Bank of India (RBI) Governor Shaktikanta Das on September 22, while speaking at the 48th AIMA National Management Convention.

Covid-19 may be a watershed event in our era, Das said, adding it’s caused widespread devastation of lives and livelihoods. There are only a few parallels to the present shock, Das said.

“The pandemic is probably going to go away indelible marks on the planet economy,” Das said, adding that it’s affected the poor and therefore the vulnerable more.

India’s economic system has transformed rapidly to support the necessity of economy, Das said adding recovery has been uneven among different sectors.

Das said the assembly linked incentive (PLI) scheme is a crucial initiative to spice up manufacturing sector. “It is important that sectors and corporations which enjoy the PLI utilise this chance to further improve efficiency,” Das said.
Das stressed the necessity for better technology within the post pandemic world.

Governor highlighted that a dynamic and resilient economic system is at the basis of a stronger economy and India’s economic system has transformed rapidly to support the growing needs of the economy.

“While banks are the first channels of credit within the economy, recent trends suggest increasing role of non-bank funding channels. Assets of non-bank financial intermediaries like NBFCs and mutual funds are growing; funding through market instruments like corporate bonds has also been increasing,” Das said.

According to him this is often a symbol of a steadily maturing economic system – moving from a bank-dominated economic system to a hybrid one.