RBI Governor Shaktikanta Das, during his address at the two-day India Today Conclave, Mumbai Edition, 2019, on Friday, said the central bank noticed the downturn in the economy in February, and maintained the global factors had also contributed to the ongoing slump. "RBI had noticed the signs of slowdown as early as February this year," Das said, adding the second quarter of FY20 had shown signs of deceleration. "Today, the growth has slowed down all over the world and external factors do play a role, and it's quit visible," he said. Das' statement came a few weeks after India's GDP slipped to a six-year low of 5 per cent in the June quarter, forcing the government to announce a series of measures to reverse the ongoing slowdown.
Check out all the updates on RBI Governor Shaktikanta Das's address on India Today Conclave, Mumbai edition, 2019.
11.27 AM: Views on the autonomy of the RBI
Difference of opinions between the monetary authority and the government happens in every country, and when it happens, it's important to explain your position and not stop conversation. Because the government is sovereign, and the RBI is a part of that. So far as the decision making is concerned, I can tell you with confidence that the RBI has full autonomy on taking decisions related to the economy.
11.15 AM: RBI on asset qualities of NBFCs
We are monitoring top NBFCs closely. Wherever it's required, our teams take a deep dive and find out the reasons. It's totally dependent upon NBFCs to do their asset quality. However, we have not thought on those lines. Also, we have NBFCs who are doing very well and credit flow to them is good. Wherever there are governance lapses, the market has been punishing these NBFCs. So it's on banks to take a call.
11.09 AM: On reduction of corporate tax for domestic companies
This is a bold and welcome decision. During Arun Jaitley's tenure as FM, the corporate tax was reduced. This was one of the hurdles, and the measures will help revive the economy.
11.03 AM: RBI Governor on the current economic slowdown
10.59 AM: On series of repo rate cuts
We can't go back to Fed like rates. We don't know what a real effective interest rate will be like, because the law of the land mandates the RBI to ensure price stability. But how much lower we can go down depends upon the data we gather on the economy. India can't be compared with advanced economies. I want to assure that we are not targeting a 2 per cent growth. In India, our inflation target is 4 per cent. Whereas in advanced economies, most of them have near zero inflation. Take for instance the US has an inflation target of 2 per cent.
10.53 AM: RBI Governor on academic qualification
"I have been in the RBI for nine months, and I think policy making involves a lot of complex angularities. When it comes to policy making, whether you did a particular course 35 years ago, I think it depend on overall experience you get over the years."
10.49 AM: There are factors pulling down the growth and there are opportunities available, and if we garb those opportunities, we can get out of any challenge, says the RBI Governor.
10.44 AM: "Today, the growth has slowed down all over the world and external factors do play a role, and it's quit visible. The second quarter of FY20 has shown signs of deceleration. So far as India is concerned, over the past five year, the GDP has been on the higher side of 7 per cent. But this year's GDP numbers have woken up everyone," says RBI Governor.
10.20 AM: "We are fortunate to have a young population, whose average age will be 29 by next year, making us the youngest nation on the planet. What do we need to do to release this great energy which lies sorely underutilised? Energy that creates wealth for individual & for the nation?" says Arun Purie.
10.10 AM: India Today Group Chairman & Editor-In-Chief Aroon Purie starts his welcome address at India Today Conclave, Mumbai edition, 2019.