RBI Governor Projects growth rate of 10.5% for next financial year

RBI Governor Shaktikanta Das has reiterated that the central bank has projected the country's growth forecast of 10.5 per cent for the next year. He said, the liquidity will continue to be sufficient and the central bank will make available liquidity at the appropriate times. He added that the Apex bank will see that the borrowing programme goes through in a very orderly manner.

Meanwhile, Global rating agency Moody's has upped India's growth projection for the financial year 2021-22 to 13.7 per cent from 10.8 per cent estimated earlier.

In its 'Global Macro Outlook 2021-22, Moody's said, India's Economy has rebounded quickly from one of the world's longest and most stringent lockdowns, which also came with the steepest fall in GDP in the second quarter of 2020. For the current fiscal year, the agency expects the Indian economy to contract by 7 per cent, lower than its previous estimate of 10.6 per cent contraction. The revised numbers came on the back of normalisation of activity and growing confidence in the market with the rollout of Covid-19 vaccines.

Meanwhile, speaking on the liquidity management, RBI Governor, Shaktikanta Das said the central bank has several instruments on its table. He said as and when the time is required, RBI will use various tools to inject liquidity. HE made it clear that pulling out liquidity should not be done prematurely in a manner that it could stifle growth. Mr. Das said RBI does not want to create an impediment to the process of revival of economic activity.