Some Green Shoots Are Sprouting In The Economy, Says RBI Chief

But we will wait for two more quarters to see if this momentum sustains: Shaktikanta Das

- Surabhi/K Ram Kumar

Some green shoots of growth are visible in the economy going by the steady increase in the cost of projects sanctioned by banks and financial institutions, and higher investment in fixed assets by India Inc, according to Reserve Bank of India Governor Shaktikanta Das.

Das emphasised that it is important to wait and see whether these green shoots sustain over a period of two quarters or so before the central bank reaches a conclusion. It would be premature to just see a green shoot and reach a conclusion, he said during an exclusive interaction with BusinessLine.

These comments come in the backdrop of the country’s GDP growth sliding to a 26-quarter low of 4.5 per cent in the second quarter and the RBI sharply lowering its growth estimate for FY2020 to 5 per cent from 6.1 per cent earlier.