Reserve Bank of India (RBI) Governor Shaktikanta Das has said the Indian economy is out of the Covid-19 crisis and it will grow upward from here. He said the government's investment push in the private sector will start to show impact but the country needs to be prepared for rising coronavirus graph.
"The large capital expenditure announced by the government will support economic activity and investment. It is expected to crowd in private investment. From now on, the economy is expected to move only in one direction - that is, upwards," Das said, reported The Economic Times.
He said rising bond yields across the world are posing challenges in economic recovery but the RBI was confident to manage these crises smoothly. He said the RBI will continue to support the market while ensuring the central borrowing programmes go through smoothly.
The Reserve Bank of India has pegged the GDP growth rate for the next financial year at 10.5 percent, though a tad lower than the government's projection of 11 per cent.
The projection is in line with the estimates in the Union Budget 2021-22 presented in Parliament last month. The Centre has projected the economy will grow at 11 per cent, up from an estimated historic decline of 8 per cent in 2020-21, on account of the COVID-19 pandemic. After contracting for two consecutive quarters, India's GDP grew 0.4 per cent in October-December quarter.