Economy in new fiscal: RBI stays with forecast, states surge won’t impact growth

RBI Governor Shaktikanta Das has recently said that the new wave of CoronaVirus infections was unlikely to impact the economic recovery, and maintained the RBI’s recent 10.5% growth forecast for the coming fiscal year.

The RBI Governor’s assurance comes in the wake of apprehensions about surging new COVID-19 infections and lockdowns being clamped in many cities. RBI’s estimate is in line with the pre-Budget Economic Survey that predicted a ‘V-shaped’ recovery, and stated that the Indian economy will rebound with 11% growth in the next financial year.

Das, at Times Network India Economic Conclave 2021, remarked, “Revival of economic activity should continue unabated and I don’t see a downward revision in 10.5% growth in the coming fiscal which the RBI has given last month.” He also said that he did not foresee a repeat of the nationwide lockdown that the country witnessed last year.“The rapid progress in vaccine has upgraded the global outlook although we are not out of the woods yet as fresh waves of newer variants of the virus bring in fresh concerns,” he added.