Corona could hurt India in economic downturn: Reserve Bank

Mumbai, Mar 16, 2020, Monday

Corona virus could slow the growth of the Indian economy too, RBI Governor Shaktikanta Das said today. As the trade volume with China is high, Indian businesses will also be affected by the Corona.

India is not completely free of corona as there are more than 100 cases reported in India. He said the impact of the global recession caused by Corona would also be seen in India. Demand may also decline in India. The RBI is reviewing how much the Indian economy will suffer due to the corona and estimates will be released when the next biennial policy is announced. Since the Indian economy is also associated with the global economy, India cannot escape its effects.

The meeting of the Reserve Bank of India's Monetary Policy Committee (MPC) was signaled today by the Reserve Bank for reducing the repo rate. The next sitting of the MPC will start from March 31 and continue till April 3. The Reserve Bank's Governor Shaktikanta Das also announced measures to increase liquidity in the country's economy, which is facing the impact of the outbreak of coronavirus.