“India should strive and become a part of the global manufacturing value chain to boost growth,” says RBI Governor Shaktikanta Das.
Being insulated from the global value cannot be a justification for remaining permanently away from it for far too long. “For a major economy such as ours, which is increasingly making its global presence felt, it is necessary to play a significant part in the global value chain. I am sure that the policymakers in the government will give due attention to this aspect,” said RBI Governor Shaktikanta Das.
There are a number of steps that have been taken in this direction in recent months and years, however, more steps are necessary, he added. January bulletin of the RBI shows growth prospects in a few other sectors as well. Other than manufacturing, food processing, textiles, and tourism sectors are shown as the key sectors to tap for growth.
Shaktikanta Das also said the markets were somewhat surprised by RBI’s action a little ahead of time, in terms of reduction in policy rate as early as in February 2019, when the RBI anticipated that momentum for a slowdown is building up.