INSUBCONTINENT EXCLUSIVE:
RBI has retained real GDP growth for 2021-22 at 9.5 per centThe Reserve Bank of India (RBI) on Friday retained the projection of real GDP
growth at 9.5 per cent for the current fiscal, consisting of 21.4 per cent in the first quarter, 7.3 per cent in the second quarter, 6.3 per
at 17.2 per cent by RBI.The central bank's decision to maintain status quo on the real GDP growth for 2021-22 was influenced by the fact
economy.At the same time though, it has cautioned that global commodity prices and episodes of financial market volatility, together with
vulnerability to new waves of infections are, however, downside risks to economic activity.RBI Governor Shaktikanta Das in his speech at the
conclusion of the three-day Monetary Policy Committee's (MPC) meeting, said that all the three high frequency indicators
vaccinations are likely to boost private spending on goods and services including travel, tourism and recreational activities, propelling a
broad-based recovery in aggregate demand
likely to accelerate with recovery in manufacturing and non-contact intensive services, release of pent-up demand and the pace of
consumption, consumer durable sales and hiring of urban workers," he noted.The results of the July round of the Reserve Bank's consumer
confidence survey suggest that one year ahead sentiments returned to optimistic territory from historic lows.Referring to first quarter
results of some major listed entities, the RBI chief said that corporates have been able to maintain their healthy growth in sales, wage
growth and profitability, led by information technology firms
This will also support aggregate disposable income of consumers.Though he said that investment demand is still "anaemic", improving capacity
utilisation, rising steel consumption, higher imports of capital goods and the economic packages announced by the Centre are expected to
expedite the long awaited economic revival."Innovation and working models adopted during the pandemic by businesses will continue to reap
efficiency and productivity gains even after the pandemic recedes
This should help trigger a virtuous cycle of investment, employment and growth," he added.
