RBI Projects GDP Growth At 10.5% For FY 2021-22

On Friday, addressing the press after the Monetary Policy Committee meeting, RBI governor Shaktikanta Das said that the central bank has projected GDP (gross domestic product) at 10.5% for the financial year 2021-22 adding that "outlook on growth has turned positive; signs of recovery strengthen further."

The committee also left the repo rates unchanged at the record low level of 4% and the reverse repo rate was at 3.35%.

This was the fourth time in a row that the RBI was leaving interest rates unchanged.

"The Budget has provided impetus to health and infra sectors. Vegetable prices likely to remain soft in near term; inflation to be revised to 5.2% in Q4 of FY21," Das said further.

After the outbreak of COVID-19, India suffered its worst contraction in economic growth for the April-June quarter, and the GDP is projected to contract by a record 7.7% in the current fiscal ending 31 March 2021. The Pre-Budget Economic Survey predicted a "V-shaped" recovery, saying that the Indian economy will rebound, with 11%, in the next financial year that will begin on 1 April 2021.