“Our preliminary analysis shows that the growth rate next year, that is, at 10.5 per cent, which we had given, would not require a downward revision,” said Shaktikanta Das.
A revival in economic activity should continue “unabated” despite a recent surge in coronavirus infections in many areas, the chief of the Reserve Bank of India said on Thursday. Central bank governor Shaktikanta Das called the increase a “matter of concern” but said India was better prepared to tackle the situation. With a vaccination drive underway, he added, the stringent lockdowns imposed last year might not be needed. “The revival of economic activity which has happened should continue unabated going forward,” Das said in comments to the Times Network’s India Economic Conclave in the capital.
“This time around we have some additional insurance against the impact of the COVID-19 pandemic.” Das said he did not foresee any downward revision in the growth forecast of 10.5 per cent for fiscal year 2021/22, based on preliminary data, but final projections are to be published on April 7 after a review by the monetary policy committee.
India added 53,476 COVID-19 infections on Wednesday for the highest daily rise since Oct. 23, the health ministry said. Its tally of 11.8 million infection ranks India third-highest worldwide after the United States and Brazil.
The central bank chief emphasised again the need for an orderly evolution of the government bond yield curve, saying it could otherwise be an impediment to economic recovery and also raise corporate borrowing costs. Das said there was no fight between the central bank and the bond market and the two should continue to be co-operative and not combative.
News Source:- NDTV