RBI retains GDP growth prediction at 9.5 percent for FY22
The Reserve Bank of India (RBI) on Friday retained the real GDP growth at 9.5 percent for the financial year 2022 as the domestic economic activity has started to recover following a decline in the second wave of coronavirus.
This consists of 21.4 percent in Q1, 7.3 percent in Q2, 6.3 percent in Q3, and 6.1 percent in Q4. The real GDP growth for Q1:2022-23 is projected at 17.2 percent, said RBI Governor Shaktikanta Das after a three-day meeting of its Monetary Policy Committee (MPC).
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He further said that agricultural production and rural demand were expected to remain resilient. "Urban demand is likely to mend with a lag as manufacturing and non-contact intensive services resume on a stronger pace, and the release of pent-up demand acquires a durable character with an accelerated pace of vaccination," he said.
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Shaktikanta Das said buoyant exports, the expected pick-up in government expenditure, including capital expenditure, and the recent economic package announced by the government will provide further impetus to aggregate demand.
"Although investment demand is still anemic, improving capacity utilisation and congenial monetary and financial conditions are preparing the ground for a long-awaited revival," Reserve Bank of India's Governor said.
Furthermore, he said that the recovery remains uneven across sectors and needs to be supported by all policymakers. Adding, he said that the RBI remains in whatever it takes' mode with a readiness to deploy all its policy levers -- monetary, prudential, or regulatory.
-PTC News
