New Delhi: Days after the Reserve Bank of India (RBI) downgraded the nation’s GDP growth forecast from 10.5 to 9.5 per cent in FY22, Niti Ayog Vice-Chairman Dr Rajiv Kumar said on Saturday that growth projections will be revised once the economy starts recovery this month and gathers momentum in July.
In a statement, he said the recovery will start from June itself and will get pace from July 2021, according to media reports.
The RBI cut the GDP growth forecast for the financial year 2021-22 to 9.5 percent due to the impact of the second wave of the coronavirus, which, he said, is going to impact the economy in the first quarter (April-June).
“Economy will recover below than expected in the first quarter. Our economy will grow at a pace of 10 to 10.5 percent in FY22.”
On the rise of fuel prices, Dr Kumar said, “The Centre should do something about petrol-diesel price rise, but we need balance also. The government has the responsibility to control inflation, I hope that those who have this responsibility will balance.”
Observing that, unlike the first wave, the impact of the second wave of Covid-19 is likely to be relatively contained, RBI Governor Shaktikanta Das had said that taking several factors into consideration, “real GDP growth is now projected at 9.5 percent in 2021-22 consisting of 18.5 percent in Q1; 7.9 percent in Q2; 7.2 percent in Q3; and 6.6 percent in Q4 of 2021-22.”
Earlier, the central bank had projected a growth rate of 10.5 percent for 2021-22.
According to the provisional estimates of national income released by the National Statistical Office (NSO) on May 31, India’s real GDP contracted by 7.3 percent for 2020-21, with GDP growth in the January-March quarter being at 1.6 percent (year-on-year).
(VP)