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RBI MPC meeting: GDP growth retained at 9.5% for FY22

RBI MPC meeting: GDP growth retained at 9.5% for FY22

Shaktikanta Das said that the Indian economy hauled itself out of its deepest contraction and is better prepared to deal with COVID-19.

RBI MPC meeting announcements RBI MPC meeting announcements

Reserve Bank of India Governor Shaktikanta Das, during the MPC meeting announcements on Wednesday, stated that GDP growth forecast has been retained at 9.5 per cent for FY22. Das said that the Indian economy hauled itself out of its deepest contraction and is better prepared to deal with COVID-19.

Das stated that the projection for real GDP growth is retained at 9.5 per cent in 2021-22, with 6.6 per cent in Q3, and 6 per cent in Q4. Real GDP growth is projected at 17.2 per cent for Q1 of 2022-23 and at 7.8 per cent for Q2 of 2022-23.

“Downside risks to the outlook have risen with the emergence of Omicron and renewed surges of COVID-19 infections in a number of countries. Besides, notwithstanding some recent corrections, headwinds continue to be posed by elevated international energy and commodity prices, potential volatility in global financial markets due to a faster normalisation of monetary policy in advanced economies, and prolonged global supply bottlenecks,” stated the Governor.

The projections come in line with what experts had predicted. Most economists and analysts stated that they expect the RBI to retain the GDP growth for FY22.

“Overall, the recovery that had been interrupted by the second wave of the pandemic is regaining traction, but it is not yet strong enough to be self-sustaining and durable. This underscores the vital importance of continued policy support,” stated Das.

He elaborated that GDP has expanded by 13.7 per cent in the first half of 2021-22, in alignment with RBI’s projection. In several sectors of the economy, pre-pandemic levels of output have been crossed, he added.

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