Emphasizing that economic growth will only move northwards, the Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday pegged the GDP growth rate for the next financial year at 10.5 per cent, though a BIT lower than the government's projection of 11 per cent.

Addressing the press after the Monetary Policy Committee meeting, RBI  said that "outlook on growth has turned positive; signs of recovery strengthen further."  The Policy Committee also left the repo rates unchanged at the record low level of 4 percent and the reverse repo rate was at 3.35 percent. This was the fourth time in a row that the RBI was leaving interest rates unchanged.

"The Budget has provided an impetus to health and infra sectors. Vegetable prices likely to remain soft in near term; inflation to be revised to 5.2 percent in Q4 of FY21," Das said further.

After the outbreak of COVID-19, India suffered its worst contraction in economic growth for the April-June quarter, and the GDP is projected to contract by a record 7.7 percent in the current fiscal ending 31 March 2021. The Pre-Budget Economic Survey predicted a "V-shaped" recovery, saying that the Indian economy will rebound, with 11 percent, in the next financial year that will begin on 1 April 2021.

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