Second COVID wave hit to economy expected to be limited: RBI governor

FPJ Web DeskUpdated: Friday, June 04, 2021, 10:25 AM IST
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RBI Governor Shaktikanta Das/ File | ANI

Shaktikanta Das, Governor, Reserve Bank of India said the hit to the economy in COVID second wave is expected to be limited. Unlike the first wave when we came to a standstill, the hit to economic activity is expected to be limited in the second wave, he said. Urban demand, as reflected in some high-frequency indicators recorded sequential moderation, he added.

The resilience of agriculture, forecast of monsoon, and the gathering momentum of the global economy could act as tailwinds for the domestic economy as the second wave recedes, Das said.

There is rebound in global trade to support India's exports, said RBI Governor Shaktikanta Das. India's exports have surged during the last few month, he said.

The central bank has cut growth projections for the financial year 2021-22 from 10.5 percent to 9.5 percent.

The Reserve Bank of India sees Inflation in the current fiscal year to be at 5.1 percent and expects 5.2% inflation in Q1; 5.4 in Q2; 4.7 in Q3; 5.3 in Q4 with risks broadly balanced.

The foremost endeavour of RBI through the pandemic has been to create conducive financial conditions, so that fin institutions and market continue to function normally, said RBI Governor Das.

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