The Monetary Policy Committee, headed by Reserve Bank of India (RBI) Governor Shaktikanta Das, has set a target of 7.9 per cent growth in July-September for the current fiscal, keeping the gross domestic product (GDP) forecast for 2021-22 at 9.5 per cent. Quarter of the fiscal year.
In the first quarter (April-June) of the current fiscal year, GDP expanded by 20.1 percent, with the economy shrinking by 24.4 percent, largely due to a lower base effect. Hit the country.
According to the central bank, real GDP growth in the June quarter was 9.2 percent lower than it was two years ago. As needed, all components of GDP recorded strong annual growth. On the supply side, real gross value added (GVA) increased by 18.8 per cent year-on-year in the June quarter.
The Reserve Bank governor said the low rate of new Govt-19 cases, driven by easing of controls and a sharp pick-up on the pace of vaccination, accelerated the recovery pace of economic activity in August-September.
Although the outlook for overall demand is gradually improving, the economic output is below the pre-COVID level and the recovery is inconsistent, relying critically on policy support, Mr Das said. Communication intensive services, which account for two-fifths of the country’s economic activity, are still lagging behind compared to pre-epidemic levels.
“The Reserve Bank kept key policy rates unchanged, the policy stance was in line with expectations, and the system kept its promise to keep the system cash high to support growth.
Excess cash flow can contribute to the development of anemia. The Reserve Bank’s retention of its GDP growth forecast for FY22 at 9.5 per cent is a sensible one and the CBI forecast was reduced to 5.3 per cent from 5.7 per cent earlier despite higher crude prices.
RBI’s accommodating policy should be in addition to strong corporate revenue, higher immunizations and a sustained pace of economic growth, “said Millwood Kane International Founder and CEO.