Economy / Economic recovery to be faster than predicted: Finance Ministry

Zoom News : Dec 16, 2020, 08:57 AM
New Delhi: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired the 23rd meeting of the Financial Stability and Development Council (FSDC) through video conference here on Tuesday.

As per an official release, the meeting reviewed the major macroeconomic developments and Financial Stability issues (global and domestic) with special reference to vulnerability related issues and noted that the policy measures taken by the government of India and the financial sector regulatory authorities have ensured faster economic recovery in India as reflected in the reduced contraction of GDP in Q2 of 2020-21.

"The economy has gained momentum and the path to recovery will be faster than what was predicted earlier. The discussions were held on further measures that may be required to be taken to ensure consistent support of the financial sector for achieving faster real economic growth and achieving the overall macroeconomic targets while continuing to maintain financial stability. The Council also discussed the budget proposals submitted by RBI and other regulators," the release stated.

The release said that in the meeting it was noted that there is a need to keep a continuous vigil by the government and all regulators on the financial conditions that could expose financial vulnerabilities in the medium and long-term.

"The Council discussed the challenges involved in the smooth transition of London Interbank Offer Rate (LIBOR) based contracts and noted that a multipronged strategy involving relevant stakeholder institutions and departments is required in this regard. The Council also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor of RBI and the action taken by members on FSDC decisions," it added further.

The meeting was also virtually attended by Anurag Thakur, Union Minister of State for Finance and Corporate Affairs, Shaktikanta Das, Governor, Reserve Bank of India, along with other officials.