34 C
Delhi
Tuesday, September 29, 2020

RBI raises 2020-21 GDP growth projection to 6%

- Advertisement -

Commercial banks surpass target of agri credit in FY19: RBIMumbai, Feb 6 (IANS) The Reserve Bank of India (RBI) on Thursday raised its 2020-21 gross domestic product (GDP) growth projection to 6 per cent, separating it in the range of 5.5-6 per cent for the first half of the next fiscal and at 6.2 per cent for the third quarter (Q3) of 2020-21.

Announcing its last bi-monthly policy review of the current fiscal, the RBI”s Monetary Policy Committee (MPC) on Thursday maintained status quo on the repo rate and continued with its accommodative stance, while raising growth the forecast for 2020-21 to 6 per cent.

The central bank pegged the April-September 2020 GDP growth in the range of 5.5-6 per cent, and the October-December (Q3) 2020 GDP growth at 6.2 per cent. The RBI had in December projected GDP growth for the second half of the current fiscal at 4.9-5.5 per cent, and the for first half of fiscal 2021 at 5.9-6.3 per cent.

This was in line with the Central Statistics Office”s (CSO) advance estimates which pegged the current year”s GDP growth rate at 5 per cent.

The government”s Economic Survey has projected the 2020-21 economic growth at 6-6.5 per cent.

The RBI Governor also listed several positives in the scenario, including improvement in industrial activity, better core industry performance and higher rabi sowing.

Weak demand, however, continued to affect key sectors like manufacturing in the third quarter of 2019-20 though sentiment has improved, according to the RBI”s monetary policy statement.

India”s GDP growth has been on a downward slide for the last six quarters. In the September quarter of this fiscal, it slipped further to hit a six-year low of 4.5 per cent, resulting from the slump in manufacturing output, which contracted by 1 per cent.

Economic growth rate moderated from 5 per cent in the April-June quarter of this fiscal and 7 per cent in the July-September quarter of 2018.

In December, the RBI had revised its GDP growth projection for fiscal 2020 to 5 per cent, from its earlier 6.1 per cent. The MPC, which kept the policy rates unchanged at 5.15 per cent, had also accepted that economic growth had weakened further with the output gap remaining “negative”.

The MPC said that its growth outlook would be influenced by several factors. It expects private consumption, particularly in rural areas, to recover on the back of improved rabi prospects.

“The recent rise in food prices has shifted the terms of trade in favour of agriculture, which will support rural incomes,” the policy statement said.

It also expects the easing of global trade uncertainties to encourage exports and spur investment activity, but conceded that the breakout of the coronavirus may, however, impact tourist arrivals and global trade.

“Monetary transmission in terms of a reduction in lending rates and financial flows to the commercial sector has progressed vis-a-vis the last policy, and this could spur both consumption and investment demand,” it said.

The MPC also noted that rationalisation of personal income tax rates in the Union Budget 2020-21 should support domestic demand along with measures to boost rural and infrastructure spending.

–IANS

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News

Security at Ladakh is uneasy, ‘no war no peace’ status: IAF chief

New Delhi, Sep 29 (PTI) The present security scenario along our northern frontiers is at an uneasy "no war no peace" status, Chief of...

New global test will give Covid test results ‘in minutes’

Geneva, Sep 29 (IANS) A test that can diagnose Covid-19 in minutes will dramatically expand the capacity to detect cases in low- and middle-income...

India can now take defence assets on lease

New Delhi, Sep 29 (IANS) India can take defence assets on lease as and when required and operate without owning thereby, substituting huge initial...

Microsoft joins telecommunications industry to roll out 5G, more

San Francisco, Sep 29 (IANS) Microsoft on Monday announced a partnership with the telecommunication industry globally to unlock the power of 5G and bring...

Kohli wins Super Over thriller for RCB, Kishan’s 99 in vain

Dubai, Sep 29 (IANS/GloFans) In yet another roller-coaster contest, Royal Challengers Bangalore (RCB) edged out Mumbai Indians (MI) in a Super Over tie-breaker - the...

Rs 3L cr PLI scheme for 10 sectors to boost domestic manufacturing

By Subhash Narayan, (IANS) In a major push to domestic manufacturing in the country, the government proposes to pump in over Rs 3 lakh...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Health ministry launches web portal for COVID-19 vaccine updates

New Delhi, Sep 28 (PTI) The Union Health Ministry on Monday launched a web portal that will provide all important information on COVID-19, vaccine...

Health ministry launches web portal for COVID-19 vaccine updates

New Delhi, Sep 28 (PTI) The Union Health Ministry on Monday launched a web portal that will provide all important information on COVID-19, vaccine...

Dependence of global supply chain on single source exposed: PM Modi

New Delhi, Sep 28 (PTI) The coronavirus pandemic has shown the risk involved in excessive dependence of the global supply chain on any single...

Over 3,000 vaccinated against coronavirus in Moscow

Moscow, Sep 28 (IANS) More than 3,000 people in Moscow have been vaccinated against the novel coronavirus, the media has reported."More than 3,000 volunteers...

SC seeks UPSC response for not postponing exams scheduled on Oct 4

New Delhi, Sep 28 (IANS) The Supreme Court on Monday sought response from the UPSC as to why the Civil Services (Preliminary) examinations, scheduled...

Clinical trial of Ayurvedic remedy for Covid-19 shows groundbreaking results

New Delhi, Sep 28 (IANS) A groundbreaking interim report on a clinical trial being conducted in three hospitals has shown that Covid-19 patients on...

Trending News In India

India can now take defence assets on lease

New Delhi, Sep 29 (IANS) India can take defence assets on lease as and when required and operate without owning thereby, substituting huge initial...

New global test will give Covid test results ‘in minutes’

Geneva, Sep 29 (IANS) A test that can diagnose Covid-19 in minutes will dramatically expand the capacity to detect cases in low- and middle-income...

India can now take defence assets on lease

New Delhi, Sep 29 (IANS) India can take defence assets on lease as and when required and operate without owning thereby, substituting huge initial...

Microsoft joins telecommunications industry to roll out 5G, more

San Francisco, Sep 29 (IANS) Microsoft on Monday announced a partnership with the telecommunication industry globally to unlock the power of 5G and bring...

Kohli wins Super Over thriller for RCB, Kishan’s 99 in vain

Dubai, Sep 29 (IANS/GloFans) In yet another roller-coaster contest, Royal Challengers Bangalore (RCB) edged out Mumbai Indians (MI) in a Super Over tie-breaker - the...

Rs 3L cr PLI scheme for 10 sectors to boost domestic manufacturing

By Subhash Narayan, (IANS) In a major push to domestic manufacturing in the country, the government proposes to pump in over Rs 3 lakh...

Trending Showbiz

NCB seizes phones of Deepika, Rakul, Simone, Karishma in drugs case

Mumbai, Sep 26 (IANS) The Narcotics Control Bureau (NCB), which quizzed Bollywood actors Rakul Preet Singh, Deepika Padukone, her former manager Karishma Prakash, and...

NCB quizzes Deepika, Sara, Shraddha in drug case related to SSR death

Mumbai, Sep 26 (IANS) The Narcotics Control Bureau (NCB) on Saturday questioned Bollywood divas Deepika Padukone, Sara Ali Khan, Shraddha Kapoor for several hours...

‘CBI delay in converting abetment to suicide to murder frustrating’

Mumbai, Sep 25 (IANS) Vikas Singh, family lawyer of late actor Sushant Singh Rajput, on Friday stated that the delay being by Central Bureau...

NCB questions Rakul, Deepika’s ex-manager, Dharma Productions honcho

Mumbai, Sep 25 (IANS) The Narcotics Control Bureau (NCB) on Friday is questioning Bollywood actor Rakul Preet Singh, Dharma Productions executive producer Kshitij Ravi...

Famed singer S.P. Balasubrahmanyam succumbs to Covid-19

Chennai, Sep 25 (IANS) Famed playback singer and Padma awardee S.P. Balasubrahmanyam, or popularly SPB or Balu in the movie world and who has...

Trending Sports

Kohli wins Super Over thriller for RCB, Kishan’s 99 in vain

Dubai, Sep 29 (IANS/GloFans) In yet another roller-coaster contest, Royal Challengers Bangalore (RCB) edged out Mumbai Indians (MI) in a Super Over tie-breaker - the...

ICC gets recognition for two digital initiatives in Leaders in Sports Awards

Dubai, Sep 28 (PTI) The International Cricket Council (ICC) has been recognised for its twin digital initiatives at the prestigious Leaders in Sports Awards...

Played nearly 500 games, can speak to any player says Ganguly

Kolkata, Sep 28 (PTI) His nearly "500 international match experience" gives him the right to speak and guide any player "be it Shreyas Iyer...

Went through rigorous physical, mental transformation for 1996 Olympics, says Paes

New Delhi, Sep 28 (IANS) The year was 1996 and no Indian had won an individual medal at the Olympics 44 years prior to...

Sensational Tewatia hits five sixes in an over as RR defeats KXIP

Sharjah, Sep 28 (PTI) Rahul Tewatia struck five sixes in an over at the fag end of the match as Rajasthan Royals recorded the...

Gill stars as clinical KKR thrash SRH by 7 wkts

Abu Dhabi, Sep 27 (IANS/GloFans) Opener Shubhman Gill's unbeaten 70-run knock along with Eoin Morgan's 42 not out guided Kolkata Knight Riders (KKR) to...

Latest Trending News In India

Security at Ladakh is uneasy, ‘no war no peace’ status: IAF chief

New Delhi, Sep 29 (PTI) The present security scenario along our northern frontiers is at an uneasy "no war no peace" status, Chief of...

New global test will give Covid test results ‘in minutes’

Geneva, Sep 29 (IANS) A test that can diagnose Covid-19 in minutes will dramatically expand the capacity to detect cases in low- and middle-income...

India can now take defence assets on lease

New Delhi, Sep 29 (IANS) India can take defence assets on lease as and when required and operate without owning thereby, substituting huge initial...

Microsoft joins telecommunications industry to roll out 5G, more

San Francisco, Sep 29 (IANS) Microsoft on Monday announced a partnership with the telecommunication industry globally to unlock the power of 5G and bring...

Kohli wins Super Over thriller for RCB, Kishan’s 99 in vain

Dubai, Sep 29 (IANS/GloFans) In yet another roller-coaster contest, Royal Challengers Bangalore (RCB) edged out Mumbai Indians (MI) in a Super Over tie-breaker - the...