The real growth rate of GDP for the current financial year 2021-22 is expected to be 9.5 per cent, said RBI Governor Shaktikant Das.
It is expected to be 7.9 per cent in the second quarter, 6.8 per cent in the third quarter and 6.1 per cent in the fourth quarter. The growth rate is expected to reach 17.2 per cent in the first quarter of next year.
The steps taken by the government to streamline supply have helped reduce volatility in vegetable prices as well as lower edible oil prices. The consumer price index is declining, said Shaktikant Das.
There are signs that the Corona-era economy is slowly recovering. The credit policy of the Reserve Bank was announced today.
On this occasion, RBI Governor Shaktikant Das made some important announcements. He said the reverse repo rate remained unchanged at 3.35%.
Shaktikant Das said marginal standing facility rates and bank rates have remained unchanged at 4.25%. The reverse repo rate also stands at 3.35%.
The recovery in the Indian economy is gaining momentum. Das said the Indian economy has recovered a lot since the last meeting of the Monetary Policy Committee.
Das said the path to strong growth, inflation is more favorable than expected. “We hope that the resilience of the economic fundamentals of the Indian economy will lead to a return to normalcy,” he said.
Aggregate demand is increasing, however, a slight slowdown persists. Production is still lower than in pre-Corona periods, he added.
The recovery rate depends on strategic support and appears to be uneven. Areas with direct contact are still lagging behind, Das said.
Shaktikant Das said that indirect taxation on fuel is being handled thoughtfully. Its aim is to mitigate rising inflation. He also said that the economy is taking steps.
Despite the adverse effects of the second wave of COVID19, almost all components of GDP grew every year in the first quarter of Q1, indicating the resilience of the economy, he added.
Das said as corona infections are declining and consumer confidence is rising, these efforts are helping private consumption, pending demand and the festive season will further boost urban demand in the second quarter.
According to the first advance forecast, demand in rural areas is expected to increase in 2021-22 due to record kharif production and flexible improvement in agriculture, he said.
If the government’s capital expenditure increases and the financial situation remains favorable, investment can improve. There are signs of an increase in the pace of investment, Das said.
Exports for the seventh consecutive month in September 2021 stood at more than US 30 30 billion, reflecting strong global demand and strategic support, positive for meeting the 400 billion export target during FY 2021-22.