INSUBCONTINENT EXCLUSIVE:
RBI deputy governor Michael Patra said GDP will be Just 1 per cent above pre-pandemic level In 2021-22Mumbai: India's gross domestic
this factor coupled with comfort on inflation, make the Reserve Bank of India (RBI) to continue with accommodative monetary policy.This was
International Centre.Making it clear that India's slide on growth began in 2017, much before the pandemic, Mr Patra, who oversees the
critical monetary policy department in the central bank, said the country has lost up to 15 per cent of output forever, which has resulted
in the loss of livelihoods as well.He denied India being behind the curve on acting against inflation and beginning to hike rates as is
being done by other countries, saying the price rise has peaked in January
And, since that is there, we have the headroom to support growth and we will do so because we are dealing with lost output, lost
livelihoods," Mr Patra said in his address.He added that the 6.01 per cent headline inflation in January is the peak level and the same will
decline to the RBI's target of four per cent by the December 2021 quarter.On growth, he said India, which had one of the strictest
lockdowns on entering the pandemic in 2020 that led to a nearly one-fourth contraction in the economy in the first quarter of 2020-21, was
the second worst-hit country after Peru."And, if you knock out the fiscal stimulus, India exceeds the depression of Peru
So, we have dug out of the deepest recessions in the world," Mr Patra added.On inflation, he said the level is appearing elevated purely due
to the base effects but the momentum or month-on-month change in inflation is negative and pulling down inflation."Our sense is that
has provided us the space to maintain the policy rates low and persevere with an accommodative stance, so that we can focus all energies on
accelerating and broadening the recovery," he added.He said the cuts in excise duties of petroleum products are still working the way
through the economy and keeping these pressures subdued.
