Mumbai: India’s Gross Domestic Product (GDP) is expected to grow 10.5% in 2021-22, RBI Governor Shaktikanta Das said on Friday.
“Central bank to maintain accommodative monetary policy stance to support growth, keep inflation at the targeted level,” RBI Governor Shaktikanta Das said, adding that inflation has returned to tolerance band of 4 per cent.
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Budget 2021-22 has provided a strong impetus for the revival of sectors such as health and well-being, infrastructure, innovation and research, among others,” Das further said.
On the inflation situation, RBI said that it has been better than expected. RBI expects stable near-term growth for food inflation. The Consumer Price Index (CPI) estimates for 2020-21 are expected to be 5.2 per cent in the first half and 5.2-5 per cent in the subsequent half.
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Shaktikanta Das said that the RBI will work to ensure that the central government’s market lending program works in a non-disruptive manner. Das further said that RBI will launch ‘Retail Direct’, a platform to allow retail investors direct access to the G-Sec market.
Das also said that a draft paper in the RBI Mutual Fund Investors (MFIs) will come with regulated lenders. RBI will extend MSF exemption for the next six months.
The RBI governor praised the Union Budget presented by Finance Minister Nirmala Sitharaman in February, saying it provides incentives to the health and infrastructure sectors.
Das said vegetable prices were expected to remain soft in the near future, while inflation in Q4 of FY15 would be 5.2 per cent. The central government will review the inflation target for the RBI by March 2021, Das said, adding that inflation targeting has worked well for the economy.
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