Business

RBI Highlights Services Sector as Growth Catalyst for Emerging Economies

RBI Deputy Governor Michael Debabrata Patra emphasized the importance of emerging and developing economies utilizing the services sector to promote productivity growth. He suggested that investing in information and communication infrastructure, reducing trade costs, and implementing business-friendly reforms could encourage private sector participation in this effort. Patra made these remarks during the Sixth Asia KLEMS Conference held at Lonavala.

Also Read: IIFL Finance Targets Rs 20,000 Crore in Fundraising for Fiscal Year 2024

Furthermore, Patra highlighted that increasing labor force participation rates, particularly among women and older workers, could contribute to productivity growth. However, achieving this would necessitate investments in improving workability, retraining, and acquiring new skills that align with evolving technology. Patra emphasized the need for a comprehensive policy intervention that encompasses multiple strategies to effectively revive and sustain productivity growth, acknowledging that various factors may be involved.

According to Patra, an effective policy response should prioritize technological capital deepening, supported by long-term investments in research and development to foster a competitive innovation ecosystem. Additionally, there is a need for skill development through consistent educational achievements and training, as well as strengthening physical infrastructure.

The central bank, which has been actively combating high inflation, has raised the repo rate by 250 basis points since May of the previous year. However, in the June 6-8 meeting, the Monetary Policy Committee, led by the central bank, chose to maintain the current policy stance of gradually withdrawing from accommodative measures.

Also Read: AI Fixes Problems In A Boeing Plane Stranded In Magadan; Planes Departs For Mumbai

Patra emphasized the importance of central banks gaining a comprehensive understanding of productivity trends to accurately assess the economy’s position within the business cycle. This understanding is crucial for formulating suitable policy responses that support consistent and non-inflationary economic growth. By doing so, financial market confidence can be fostered, leading to improved overall flow of finance within the economy, according to the deputy governor.

Shruti Rag

Recent Posts

Renowned Folk Singer Sharda Sinha Passes Away At 72; PM Modi Expresses Condolences

PM Modi expressed sorrow over Sinha’s death. "The passing of Sharda Sinha ji is deeply…

6 hours ago

US Election: India Confident Of Strong US Relations And Quad Continuity, Says Jaishankar

Jaishankar noted that the US-India relationship has flourished under both Democratic and Republican leadership, including…

7 hours ago

Sanskriti Diwas Marks 98th Birth Anniversary Of Kashiraj Dr Vibhuti Narayan Singh

Program coordinator Chakravarti Vijay Navad announced that 11 prominent individuals received the Kashiraj Dr. Vibhuti…

8 hours ago

Mallikarjun Kharge Slams ‘Batenge Toh Katenge’ Slogan During Jharkhand Campaign

Kharge emphasized that the BJP leaders promote divisive rhetoric as part of their agenda. He…

9 hours ago

Police Arrest Two In Fake Marriage Certificate Racket In Name Of Arya Samaj

DCP Nagar Abhishek Bharti revealed that five couples, including Shivani and Shrikant Yadav, recently filed…

10 hours ago

India And Nigeria Strengthen Counter-Terrorism Cooperation In Second Strategic Dialogue

Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…

10 hours ago