The Reserve Bank of India (RBI) has suggested that the government should boost exports with targeted policy support on an urgent basis.
In his statement post the Monetary Policy Committee’s (MPC) bi-monthly meeting, RBI Governor Shaktikanta Das said that with external demand strengthening, a rebound in global trade is taking hold, which should support India’s export sector.
Global demand conditions are expected to improve further buoyed by fiscal stimulus packages and the fast progress of vaccination in advanced economies, he said.
Noting that India’s exports in March, April and May 2021 have launched into an upswing, Das said that conducive external conditions are forming for a durable recovery beyond pre-pandemic levels.
“The need of the hour is for enhanced and targeted policy support for exports. It is opportune now to give further policy push by focusing on quality and scalability,” he said.