Green shoots of recovery need to sustain: RBI Guv

New Delhi: Reserve Bank Governor Shaktikanta Das on Monday said on the back of countercyclical measures undertaken by the government, structural reforms need to be continued to revive demand and support the economy.

Also, green shoots are now visible and need to be sustained to pull India out of its current slowdown. In an interview with a news agency, he said the fallout of the outbreak of novel Coronavirus in China needs to be closely monitored by "every policymaker" to tailor a swift response.

While Finance Minister Nirmala Sitharaman's Budget for 2020-21 and recent steps have created a facilitating eco-system for reviving demand and consumption through a push on infrastructure projects, it is necessary to undertake land and labour reforms, bring efficiencies in agri marketing and focus on skill development, the RBI Governor said.

The RBI saw an imminent slowdown in growth early in 2019 and used the space that was opened up by the moderation in inflation to cut interest rates on five consecutive occasions, he mentioned.