The growth momentum needs to strengthen further for a sustained economic revival and a quick return of output to pre-COVID trajectory, RBI Governor Shaktikanta Das said, as per the minutes of Monetary Policy Committee (MPC) released by the central bank on Monday.
During the MPC meeting held from February 3 to 5, the Reserve Bank of India (RBI) had kept the policy rates unchanged and decided to continue with accommodative stance as long as necessary, at least during the current financial year and into the next financial year, to revive growth on a durable basis.
"Growth, although uneven, is recovering and gathering momentum, and the outlook has improved significantly with the rollout of the vaccine programme in the country. The growth momentum, however, needs to strengthen further for a sustained revival of the economy and for a quick return of the level of output to the pre-COVID trajectory," Das said.
He also urged Centre and states to reduce indirect taxes on petrol and diesel to control inflation.
MPC member Shashanka Bhide raised concerns on demand in the economy. "The important concerns relate to the demand conditions. The rise in demand in the 'festival season' played its part in catalysing consumer demand during September-November period and sustaining this demand requires restoration of household income and employment."
As the supply side restrictions are lifted, revival of demand in terms of consumption, investment and exports is needed to sustain economic recovery, Bhide said.
The RBI has projected Indian economy to grow 10.5 per cent in 2021-22.