MUMBAI: The RBI Governor Shaktikanta Das recently said that after seeing a sharp GDP contraction in the first quarter, the Indian economy has exhibited a stronger than expected momentum in activity. However, he added that even as the growth outlook has improved, downside risks remain with respect to the surge in Covid infections. “We need to be watchful about the sustainability of demand after festivals and a possible reassessment of market expectations surrounding the vaccine,” he further said.  The calibrated opening up of the economy can supplement domestic savings, and help fund the growth requirements, Shaktikanta Das underlined while speaking at the 4th Annual Day of Foreign Exchange Dealers’ Association of India (FEDAI).
 
The RBI Governor said that market participants responded with alacrity and together we have been able to ensure stable and resilient markets across all segments. Further, a comfortable external balance and current account surplus have brought comfort. He added that internationalisation of financial markets can lower transaction costs with efficiency gains. He underlined that capital account is convertible to a great extent today.
 
Shaktikanta Das noted that the Reserve Bank has taken steps to usher in the next phase of reforms to accelerate the pace of liberalisation. The recent reform measures, many of which are in the works, have been fashioned around the four major themes of (i) liberalising financial markets and simplifying market regulation; (ii) internationalising financial markets; 
(iii) safeguarding the “buy side” – user protection; and (iv) ensuring resilience and safety.

Source:- dst.news