The Reserve Bank of India Governor Shaktikanta Das kept the GDP growth projection for FY 2021-22 unchanged at 10.5 per cent, while pointing out that global growth remains uncertain. “Vaccine distribution & its efficacy is key to global economic recovery,” the RBI Governor Shaktikanta Das said. In the last policy review, the RBI had projected the FY22 GDP growth at 10.5 percent.
The projection of real GDP growth for 2021-22 consisted of 26.2 per cent in the first quarter, 8.3 percent in the second quarter, 5.4 per cent in the third quarter and 6.2 per cent in the fourth quarter, the RBI said.
Meanwhile, the RBI Governor kept the key rates unchanged and stuck to its accommodative monetary policy stance amid concerns that rising COVID-19 infections could derail the country’s nascent economic recovery. The central bank kept the repo rate unchanged at 4 per cent and reverse repo rate untouched at 3.35 per cent. The RBI Governor also said the bank will continue with an accomodative stance “as long as necessary to mitigate the impact of the COVID-19 pandemic”.
India reported 115,736 new coronavirus infections on Wednesday.