Recovery on, start pvt investment: RBI GOV

Mumbai: Numerous macro indicators  suggest that the economic  recovery is now taking hold  after the beating it has taken  during the pandemic, but for  growth to be sustainable and  reach its potential, private  capital investment has to  resume, the Reserve Bank  Governor said on Tuesday. RBI Governor Shaktikanta Das said the economy has the potential to  grow at a reasonably  high pace in the postpandemic scenario,  provided private  capital investment re - sumes. Despite many economists  revising down their growth  forecasts between 8.5 and 10  per cent for the current fiscal, the central bank has not  changed its forecast of 9.5 per  cent for the year so far.

Addressing a banking  function -- which he said is  his first since the pandemic  begin in March 2020, the  governor asked banks to be  investment-ready when the  investment cycle picks up,  which the RBI feels to begin  from the next fiscal.

It can be noted that since  2013, private capital has been  missing from the economy  and many are of the view  that this should begin from  mid-next fiscal.

Even though he took solace  in the fast-improving balance  sheets of banks, the governor said gross bad loans of  banks have come down in the  September quarter from the  previous quarter.

Das also asked banks to improve their capital management process.

Lauding the tech entrepreneurs, the governor said  the country has emerged  as a top performer in the  startup landscape, attracting billions of foreign  capital.