Reserve Bank of India (RBI) Governor Shaktikanta Das while addressing the members of India Inc body FICCI on Wednesday, September 16, said that the country's economic recovery is not fully entrenched and will be gradual as the impact of the coronavirus pandemic has still not subsided.
"Recovery is not yet fully entranched. In some sectors, the optic noticed in June and July appear to have levelled off. By all indications, the recovery is likely to be gradual as efforts towards reopening of the economy are confronted with rising infections, the RBI Governor said.
Governor Shaktikanta Das's remarks come at a time when the country's economy is going through a period of crisis. Meanwhile, the RBI Governor also said that some high-frequency indicators including agricultural activity, Purchasing Managers Index for manufacturing, certain private estimates for unemployment point to "some stabilisation" of economic activity in the second quarter of the current fiscal year.
"Contractions in many other sectors simultaneously easing," Das added.
"Global economy estimated to have suffered the sharpest contraction in living memory in April-June 2020 on a seasonally adjusted quarter on quarter basis. World merchandised trade estimated to have registered a steep year-on-year decline of over 18 per cent in the second quarter of the 2020 calendar year," the RBI Governor added.