RBI positive about 9.5% GDP growth for FY2021-22: Shaktikanta Das

The Reserve Bank of India is positive about 9.5 per cent GDP growth estimate for the current financial year, said RBI Governor Shaktikanta Das on Thursday. Speaking at a media event, Das said that several economic indicators were showing upward growth due to opening up of economic activities and this gives the Central Bank confidence that the GDP growth will be in the estimated range in 2021-22.

Das further said that the debilitating impact of Covid-19 second wave was on the wane and economic growth will be better from the second quarter onwards. RBI has decided to focus more on growth due to the conditions created by the pandemic and will operate in the 2 per cent to 6 per cent inflation band set by the government for it, he added.

The RBI Guv even indicated that the banking regulator would like to gradually achieve the 4 per cent inflation target over a period of time and ruled out any sustained increase in inflation.

It is worth adding that India’s economy is expected to grow at a faster clip in the last three quarters of FY22 than the first quarter of the current fiscal, the finance ministry said on Friday citing rebound in macroeconomic indicators during July and August.

“With government and the RBI’s unflinching commitment to put the economy back on track, India is poised for an even faster recovery in the next three quarters of 2021-22,” the finance ministry said in its monthly economic report for August. The country’s rapidly increasing vaccination coverage and richer experience with pandemic management provide confidence that the recovery can be continued even in the event of a third wave of Covid-19, it said.

“The broad-based and swift recovery of both demand and supply side components bears testimony to India’s strong macroeconomic fundamentals, far stronger amid a once-in-a-century crisis than in 2008-09, when the global financial crisis (GFC) had triggered the great global recession,” the ministry added.

The ministry also noted that provisional GDP estimates for April-June FY22 showed that India’s resilient ‘V-shaped recovery’ was intact despite a more brutal second wave of the pandemic that had disrupted the momentum of economic recovery seen since the second half of FY21.

Meanwhile, Das also expressed RBI’s “serious concerns” with regards to the financial stability of cryptocurrencies at the event. The RBI chief said, “We have serious, major concerns on cryptocurrency with respect to financial stability, have conveyed the same to government of India.” This isn’t the first time the RBI governor voiced his concerns on cryptocurrency.

The central bank has conveyed the concerns on cryptocurrency to the government and it is up to the government to take a call on the matter, Das said, adding that there needs to be more clarity on the contribution of cryptocurrency to the economy. Earlier on June 4, too, Das had repeated the critical stance on cryptocurrencies.

“We have major concerns on cryptocurrency, which we have conveyed to the government. With regard to advice to investors, well, central banks don’t give any investment advice. It’s up to each investor to make his own appraisal, to do his own due diligence and take a very careful call with regard to his own investments,” Das said then.

Das’ latest comments comes at a time when the Government is in the advanced stages of finalising a national regulation on private cryptocurrencies. On August 16, Finance Minister Nirmala Sitharaman had said that the Union Cabinet was soon expected to take up a bill to regulate cryptocurrency and its growing market in India.

“Cabinet note is ready on cryptocurrency bill. I am awaiting Cabinet to clear that,” Sitharaman said during an interaction with reporters.

While the RBI is critical of private cryptocurrency, it is in favour of bringing out a central bank digital currency. The central bank is presently working on this model and may announce some decisions as early as the end of this year, central bank top officials have indicated in the past.


The Dispatch is present across a number of social media platforms. Subscribe to our YouTube channel for exciting videos; join us on Facebook, Intagram and Twitter for quick updates and discussions. We are also available on the Telegram. Follow us on Pinterest for thousands of pictures and graphics. We care to respond to text messages on WhatsApp at 8082480136 [No calls accepted]. To contribute an article or pitch a story idea, write to us at [email protected] |Click to know more about The Dispatch, our standards and policies