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India will grow 10.5 per cent, says Reserve Bank of India

Christian Fernsby |
The Reserve Bank of India (RBI) projected India's gross domestic product (GDP) forecast for fiscal 2021-22 (FY22) at 10.5 per cent, with RBI governor Shaktikanta Das saying there is no reason to revise the projection downwards.

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RBI's monetary policy committee had projected this estimate during April, but last month, the central bank had cut the projection to 9.5 per cent.

"The GDP growth rate projected by RBI for FY22 is 10.5 per cent. I don't see any reason to revise the growth projection downwards," Das said while addressing the Economic Times Financial Inclusion Summit on July 15.

The countrywide lockdown had resulted in a 23.7 per cent contraction in the GDP in the June quarter of FY20 and was also one of the prime reasons for the 7.3 per cent contraction in FY21.

Das said India's financial system will have a critical role to play in fulfilling the aspirations and needs of the economy on the road to recovery, according to Indian media reports.

The recovery that had commenced in the second half of 2020-21 was dented by the second wave of the pandemic in April-May 2021, he added.

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