There is a need to continue with labour and product market reforms to usher in inclusive and sustainable growth, Reserve Bank of India Governor Shaktikanta Das said on Wednesday.
In his address at the 48th National Management Convention of the All India Management Association (AIMA), he cited the need to deal with pandemic’s legacy and create conditions for future growth.
“Limiting the damage that the crisis inflicted was just the first step; our endeavour should be to ensure durable and sustainable growth in the post-pandemic future.
“Restoring durability of private consumption, which has remained historically the mainstay of aggregate demand, will be crucial going forward.
“More importantly, sustainable growth should entail building on macro fundamentals via medium term investments, sound financial systems and structural reforms,” he said.
Towards this objective, Das pointed out the need for a “big push” to investment in healthcare, education, innovation, and physical and digital infrastructure will be required.
“We should also continue with further reforms in labour and product markets to encourage competition and dynamism and to benefit from pandemic induced opportunities.”
Besides, he said that the Production Linked Incentive (PLI) scheme for certain sectors is an important initiative to boost the manufacturing sector.
“It is necessary that the sectors and companies which benefit from this scheme utilise this opportunity to further improve their efficiency and competitiveness. In other words, the gains from the scheme should be durable and not one off.”