External demand is set to improve further on targeted fiscal stimulus packages and fast vaccination
Shaktikanta Das, the governor of Reserve Bank of India, on Friday, pitched for enhanced policy support for the exports sector, given a rebound in global trade.
External demand is strengthening and the global demand conditions are set to improve further on fiscal stimulus packages and fast progress of vaccination in advanced economies, Das said, while announcing the Monetary Policy Committee’s (MPC) decision to go for status quo in rates.
“The need of the hour is for enhanced and targeted policy support for exports. It is opportune now to give further policy push, by focusing on quality and scalability,” he said.
According to him, the external conditions are conducive for a durable recovery beyond pre-pandemic levels. Further, he said India’s exports in March, April and May this year have seen an upswing, which is evident of the sector’s potential.
It can be noted that Indian exports fell by 7.2 per cent in value terms in financial year 2021, as the world wrestled with the Covid pandemic, which had a severe impact on consumption because of lockdowns, and consequently, on global trade. Exports had surged by more than 60 per cent in March to $34.45 billion, against $21.49 billion in the previous year.