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Economy shrinking 9.5% this fiscal: Reserve Bank Of India On Friday

Reserve Bank of India Governor Shaktikanta Das on October 9 said India’s Gross Domestic Product (GDP) is seen contracting by 9.5 percent in FY21 amid economic disruption. Das also said that GDP growth may turn positive by Q4 amid some economic recovery. “Indian economy is entering into a decisive phase in fight against coronavirus,” Das said, adding that rural economy was looking resilient. Citing a survey carried out by RBI, Das said that households were hoping that inflation would subside. “The GDP growth may turn positive by Q4,” Das said on friday. The MPC unanimously decided to keep the repo rate unchanged at 4 percent and maintain its accommodative stance in a bid to “revive growth in a durable basis”. Reverse repo rate remained unchanged at 3.35 percent. Marginal standing facility and bank rate also remained unchanged. On October 8, the world bank cut India’s GDP forecast for FY21. India’s GDP for the fiscal started March is expected to contract by 9.6 percent, compared to June estimates of 4.5 percent contraction, World Bank said in its South Asia Economic Focus report.

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