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COVID-19 impact: Economic recovery will start in June; speed up from July, says NITI Aayog VC

Kumar's statements came a day after the Reserve Bank of India (RBI) lowered the country's growth forecast for the current fiscal by a percentage point to 9.5 per cent from 10.5%

Kumar noted that the impact of the COVID-19 second wave will be felt in the first quarter of FY22 Kumar noted that the impact of the COVID-19 second wave will be felt in the first quarter of FY22

NITI Aayog Vice-Chairman (VC) Rajiv Kumar said on Saturday that the economic recovery from the impact of the COVID-19 pandemic will start from June 2021 and would gather pace in July. Kumar's statements came a day after the Reserve Bank of India (RBI) lowered the country's growth forecast for the current fiscal by a percentage point to 9.5 per cent from 10.5%.

In a statement, NITI Aayog's VC explained that growth projections will be revised once the economy starts to recover. "The recovery will start from June itself and will get pace from July 2021," Rajiv Kumar said, according to India Today.

Kumar has also stated that the RBI had slashed India's GDP growth forecast for FY22 from 10.5 per cent to 9.5 per cent due to the impact of the second wave of the coronavirus pandemic. He noted that the impact of the COVID-19 second wave will be felt in the first quarter of FY22.

"RBI cuts GDP growth forecast for FY22 to 9.5 per cent from 10.5 per cent due to the impact of 2nd wave, which is going to impact our economy in 1st quarter," Rajiv Kumar said, adding that the economy will recover "below than expected in 1st quarter" and will grow at a pace of "10 per cent-10.5 per cent in FY22."

Discussing the rising rates of petrol and diesel in the country, the NITI Aayog's VC said: "The Centre should do something about petrol-diesel price rise, but we need balance also. The government has the responsibility to control inflation, I hope that those who have this responsibility will balance."

Also Read: RBI lowers real GDP to 9.5%, closer to Moody's estimate of 9.3%