Earlier, the Reserve Bank of India lowered the country’s growth forecast for the 2021-2022 financial year by a percentage of 9.5 percent. In respect to this, Niti Aayog’s Vice Chairman Rajiv Kumar said that the economic recovery begins from June 2021 and likely to gather pace in July 2021.
He additionally said in his statement that the growth projections will be revised once the economy starts recovering. He said, “The recovery will start from June itself and will get pace from July 2021.”
Rajiv Kumar also said that the Reserve Bank of India cut the GDP growth forecast for Financial Year 2022 to 9.5 percent from 10.5 percent due to the impact of the second wave of the coronavirus.
He added that “RBI cuts GDP growth forecast for FY22 to 9.5 percent from 10.5 percent due to impact of 2nd wave, which is going to impact our economy in 1st quarter.”
When asked about the hike in petrol and diesel prices, Rajiv Kumar said, “The Centre should do something about petrol-diesel price rise, but we also need balance. The government has the responsibility to control inflation, I hope that those who have this responsibility will balance.”
RBI SLASHES GDP GROWTH FORECAST
Unlike the first wave, the second wave of Covid-19 impacts likely to be relatively contained. Reserve Bank of India Governor Shaktikanta Das said “real GDP growth projected at 9.5 percent in 2021-22 consisting of 18.5 percent in Q1; 7.9 percent in Q2; 7.2 percent in Q3; and 6.6 percent in Q4 of 2021-22”, after considering several factors. Earlier, the RBI had projected a growth rate of 10.5 percent for 2021-22.
The National Statistical Office’s provisional estimates of national income say that India’s real GDP contracted at 7.3 percent for 2020-21, with 1.6 percent GDP growth in the January-March.