RBI Governor says, there are signs that the world is emerging from shadow of coronavirus

RBI Governor Shaktikanta Das has said that there are signs that the world is emerging from the shadow of coronavirus. While delivering the keynote address at the 48th National Management Convention of the All India Management Association (AIMA), Mr. Das said the time is right to plan for an economy that is stronger, more inclusive and sustainable.

Stating that the pandemic has induced several structural changes which have significantly altered the way we work, live and organize businesses. With the greater shift to work from home, technology has gained the potential to boost productivity, by saving on travel time, boosting sales on online platforms and accelerating the pace of automation. As a result, consumption pattern is changing and companies are resetting their supply chains both globally as well as locally. These changes will have wider ramifications for the economy.

He said the information technology (IT) services and information technology-enabled services (ITES) backed by entrepreneurial capabilities and innovative solutions have emerged as key strengths of the Indian economy over the years. There is a growing league of Unicorns in India reflecting its potential for technology-led growth. The country has added several unicorns over the last year to become the third-largest startup ecosystem in the world. Underpenetrated Indian markets and a large IT talent pool provide an unprecedented growth opportunity for new-age firms.

He added, the pandemic has provided a new impetus to technology-driven companies such as fintech, edtech and healthtech, which are likely to see increased funding activity in the coming years. He said, the forces of 'creative destruction' are expected to boost productivity by encouraging greater competition, dynamism and innovation in several sectors of the economy.

RBI Governor has said that India's digital momentum is expected to continue with strong demand in areas such as cloud computing, customer troubleshooting, data analytics, workplace transformation, supply chain automation, 5G modernisation and cyber security capabilities. India has the natural advantage to benefit from the emerging trends in these areas. The drive towards full fiberisation of the economy has to go hand in hand with the establishment of data centres across the nation for data storage and processing. Ensuring universal, affordable and fast broadband internet access all through the country can play a critical role in advancing productivity and employment opportunities.

Further, the stronger push to digitalisation and automation can have spillover effects on ease of doing business. Medical advances and process accelerations can spark a renaissance in public health innovations and delivery. E-commerce is emerging as another promising sector for India. It has benefited from the growing market, increased internet and smartphone penetration and COVID-induced shifts in consumer preferences. Various initiatives taken by the government, namely Digital India, Make in India, Start-up India, Skill India and Innovation Fund have created a conducive eco-system for faster growth in the digital sector.

Talking about the achievements of India's manufacturing sector, RBI Governor Shaktikanta Das said the country has turned from being an importer to an exporter of mobile phones. He said the trend is likely to spill over to other sectors also; enhancing India's share in the Global Value Chain and increasing the competitiveness of India's large and Micro, Small and Medium Enterprises.

However, warning of uneven global recovery, the RBI Governor said multilateralism will lose credibility if it fails to ensure equitable access to vaccines across countries. He added that securing the health and immunity of the poor would mean a great leap towards inclusive growth. Global co-operation remains vital for rapid progress on this front.

The theme of the convention is "Beyond Recovery: New Rules of the Game". Mr Sanjay Kirloskar, Chairman & Managing Director, Kirloskar Brothers Ltd is chairing and leading the Convention as its Chairman, for AIMA.