The RBI revised the real GDP growth projection for FY21 upwards to (-) 7.5 per cent on the back signs of faster recovery after the narrowing of the GDP contraction for the July-September, along with hopes of Covid-19 vaccines. The December month monthly bulletin of the central bank said the more evidence of economic revival has emerged since the last bulletin which shows that the Indian economy is coming out of the Covid-induced slowdown.
"Since the assessment presented in the last month's article, more evidence has been turned in to show that the Indian economy is pulling out of COVID-19's deep abyss and is reflating at a pace that beats most predictions," the bulletin said. In the June-September quarter, India's GDP on a year-on-year basis contracted by (-) 7.5 per cent, narrowing from (-) 23.9 per cent in the preceding quarter.
In the December bulletin, RBI also said that financial conditions illustrated in interest rates are perhaps at their easiest in decades. Although headwinds blow, steadfast efforts by all stakeholders could put India on a faster growth trajectory, it added. The monthly bulletin said that states across all the regions saw a fall in economic activity in April following the announcement of nationwide lockdown. Subsequently, Coincident Index of all regions exhibited recovery, albeit, with intermittent downward movements.
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