RBI Governor Shaktikanta Das in a presser on Friday amid lockdown situation in the country due to the outbreak of coronavirus which has impacted businesses at large said that they are expecting normalcy to return in the second half of the year. The RBI Governor announced further reduction repo rate, mentioned extention in the moratorium for another 3 months among other announcements.
Addressing the presser, RBI Governor said, "the GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half" of the year.
"India's foreign exchange reserves have increased by 9.2 billion during 2020-21 from April 1 onwards. So far, up to May 15, foreign exchange reserves stand at 487 billion US dollars," Das informed.
Das said measures announced today can be divided into 4 categories: "To improve functioning of markets,to support exports & imports,to ease financial stress by giving relief on debt servicing & better access to working capital & to ease financial constraints faced by state govts."
Amidst this encircling gloom agriculture and allied activities have, however, provided a beacon of hope on the back of an increase of 3.7% in food grain production to a new record.
The RBI Governor further mentioned, "Three-month moratorium we allowed on term loans & working capitals we allowed certain relaxations. In view of the extension of the lockdown & continuing disruption on account of COVID-19, these measures are being further extended by another 3 months from June 1 to August 31."