Money & Banking

Economic activity will be back on track quickly: SBI Chairman

Our Bureau Kolkata | Updated on June 18, 2020 Published on June 18, 2020

SBI chief Rajnish Kumar paul noronha

SBI Chairman Rajnish Kumar on Thursday said that he expects economic activity to come back on track ‘quickly’, with a number of industries already showing signs of ‘recovery’.

According to him, businesses across various sectors have been witnessing an improvement in capacity utilisations spurred by both domestic demand and exports.

“Based on my interactions with industries, I feel that the recovery rate is improving and, in Unlock 1.0, many businesses have been noticing that they are back to normal and are operating at 70-80 per cent of their capacities. Some industries are also witnessing a growth in exports,” Kumar said at an e-session organised by the Bharat Chamber of Commerce on Thursday.

The rural economy is doing better than most other sectors and would play a crucial role in the revival of the country’s economy. With the expectation of a good monsoon and a good kharif sowing things are likely to look better moving forward.

While the situation is slowly to returning to ‘normal’ across most sectors, however, some industries, such as aviation, tourism and hospitality, might take longer to recover. Even sectors such as construction, which had got impacted, are now returning to normalcy.

“In such a scenario, we have to ensure that economic activity has to come back quickly and investment on economy has to improve,” he said.

Need for investments

In the light of the pick-up in economic activity, Kumar highlighted the need for increasing investments on various sectors to help boost the growth.

According to him, infrastructure including roads and renewable energy is likely to offer a higher potential for investments moving forward. The government policy of promoting FDI in sectors such as defence and mining and schemes supporting the MSME sector would also help bring back growth.

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Published on June 18, 2020
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