Uneven global recovery post pandemic, crisis dented inclusivity: RBI Governor

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The world has shown uneven post-pandemic recovery creating dents on inclusion due to crisis, said Shaktikanta Das, governor of Reserve Bank of India. He also expressed optimism that this has released a ‘creative destruction’ to improve productivity and the path of development. The transition to digital and automation during the Covid-19 pandemic would boost productivity. However, it would also pose difficulties to inclusiveness and lull in labour market.

Das pointed that this kind of scenario calls for significant skilling/training of our workforce. He said that any emergence of the “digital divide” must be bridged as digitisation gains speed after the pandemic.

The sectors like health, education, low-carbon and digital economy in addition to transport and communications need a big investment push. To bolster value addition and productivity in the agriculture and horticulture sector, warehousing and supply-chain infrastructure are be critical.

He said that this will create employment opportunities in semi-urban and rural areas and promote inclusive growth.

Das was delivering the keynote address at the 48th National Management Convention of the All India Management Association. In emerging economies, the poor and vulnerable have been most affected due to the pandemic.

“The lasting damage inflicted by the pandemic on these segments is of serious concern for inclusive growth. In the medium to long-run, both efficiency and equity will greatly matter for sustainable growth and macroeconomic performance,” said Das.

Das said, “The pandemic has brought to focus what India can achieve in the area of manufacturing. In the pharmaceutical sector for the first time in history, vaccines were developed and administered within a year with India remaining a forerunner and a global leader in vaccine manufacturing.