Reserve Bank of India (RBI) Governor Shaktikanta Das-led Monetary Policy Committee has retained the real gross domestic product (GDP) forecast for the current fiscal year 2021-22 at 9.5 per cent, projecting a growth of 7.9 per cent in July-September Put it. financial quarter.
GDP grew by 20.1 per cent in the first quarter (April-June) of the current fiscal, mainly because of a lower base effect, as the economy contracted a record 24.4 per cent in the year-ago period when the first COVID-19 outbreak was reported. -19 was a pandemic. hit the country
According to the central bank, real GDP levels in the June quarter were 9.2 per cent below their pre-pandemic levels two years ago. On the demand side, almost all components of GDP posted strong year-on-year growth. On the supply side, real gross value added (GVA) grew by 18.8 per cent year-on-year during the June quarter.
The RBI governor said economic activity picked up in August-September, driven by a low rate of new COVID-19 cases, easing of restrictions and a sharp increase in the pace of vaccinations.
Even though the outlook for aggregate demand is improving progressively, economic output is still below pre-COVID levels and recovery is uneven, relying critically on policy support, Mr Das said. . Compared to pre-pandemic levels, contact-intensive services, which contribute to about two-fifths of economic activity in the country, are still lagging.
“RBI kept key policy rates unchanged, policy stance adjustments were on expected lines. The central bank has lived up to its stated promise of keeping the system’s liquidity high to aid growth.
The additional liquidity will help offset the anemic increase in credit offtake. RBI has retained its GDP growth forecast for FY22 at 9.5 per cent and this is a sentiment booster and lowered the CPI forecast for FY22 from 5.7 per cent to 5.3 per cent despite higher crude oil prices. percent, which will help allay any concerns over rising inflation.
Mr. Nish Bhatt, Founder and CEO, Millwood Cane International said, A favorable policy by RBI should be well complemented by strong corporate earnings, high pace of vaccination and steady pace of economic growth.