Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday said that India will have a reasonably high growth potential in the post-pandemic scenario.
"I firmly believe that India has the potential to grow at a reasonably high pace in the post-pandemic scenario," Shaktikanta Das said.
"Numerous high-frequency indicators suggest that economic recovery is now taking hold... While the economy is picking up, it is yet to cover a lot of ground before it gets broad-based and well-entrenched," he added.
"There are signs that consumption demand, triggered by the festive season, is making a strong comeback. This should encourage firms to expand capacity and boost employment & investment amidst congenial financial conditions," RBI Governor said.
"With a scale of vaccination which is among the highest in the world, India is poised to lead the fight against COVID-19," he mentioned.
Continuing further, Das said that despite many economists revising down their growth forecasts between 8.5 and 10 per cent for the current fiscal, the central bank has not changed its forecast of 9.5 per cent for the year so far.
Addressing a banking function -- which he said is his first since the pandemic begin in March 2020, the governor asked banks to be investment-ready when the investment cycle picks up, which the RBI feels to begin from the next fiscal.
It can be noted that since 2013, private capital has been missing from the economy and many are of the view that this should begin from mid-next fiscal.
Even though he took solace in the fast-improving balance sheets of banks, the governor said gross bad loans of banks have come down in the September quarter from the previous quarter. Das also asked banks to improve their capital management process.
Lauding the tech entrepreneurs, the governor said the country has emerged as a top performer in the startup landscape, attracting billions of foreign capital.