New Delhi: The Reserve Bank of India (RBI) on Thursday projected India’s gross domestic product (GDP) rate at 10.5% for Financial Year 2022, though country’s economy is limping due to devastating Coronavirus pandemic. RBI’s Monetary Policy Committee had projected this estimate during the policy announcement in April.
Last month, the central bank had cut its projection for GDP growth for fiscal 2021-22 to 9.5% from the earlier forecast of 10.5%.
RBI Governor Shaktikanta Das has said that there is no reason for the central bank to revise the GDP projection downwards.
According to a report by rating agency Icra, the economic recovery has gained momentum after the lifting of the localised lockdowns imposed in the aftermath of the second wave, but is “incomplete”.
The Indian economy will grow in double digits for the April-June period on the low base of 2020-21 but will still be short of the levels observed in the first quarter of FY20, it said.
“…the real GDP in Q1FY22 will trail the Q1FY20 level, while recording a double-digit y-o-y (year-on-year) expansion,” it added in the report.
The countrywide lockdown had resulted in a 23.7% contraction in the GDP in the June quarter of FY20 and was also one of the prime reasons for the 7.3% contraction in FY21.