Expecting the economy to grow faster than expected, the Reserve Bank of India (RBI) released India’s Gross Domestic Product (GDP) in the 2020-21 fiscal year. Growth rate It is estimated to be minus 7.5 percent.
Earlier in October, RBI had estimated its minus 9.5 percent.
RBI Governor Shaktikanta Das Gave this information in an online press conference after a meeting of the Monetary Policy Committee.
The growth rate may remain positive in the second quarter – RBI
Expecting a positive growth rate in the second quarter of 2020-21, the RBI governor said that the estimates were based on the mild acceleration in the economy and the accommodative policies adopted in the fifth bi-monthly monetary policy meeting.
No change in key policy rates
RBI Governor Das Corona virus Due to the decline in the economy due to the epidemic, he also announced no change in the key policy rates and the repo rate will remain at 4 percent.
This is the third time in a row that the RBI has not changed the repo rate and for the next time RBI can follow this strategy. Many economic experts had also predicted a change in the repo rate.
Historical decline was seen in the first quarter
In the first quarter (April-June) of the current financial year, India GDP registered a decline of 23.9 percent.
Ever since the country’s GDP figures began to collect, it was the lowest growth rate ever and after the economic liberalization in 1991-92, the country’s growth rate went into negative for the first time.
7.5 percent growth rate in the previous quarter
Thereafter, the economy had improved in the last quarter (July-September) and the economy recorded a decline of 7.5 percent. With this, India technically went into an economic downturn.
Explain that the condition of negative growth in two consecutive quarters is called recession.
Although experts had predicted an economy to fall by 8 percent, but Lockdown Restrictions improved rapidly after the deregulation relaxed.
Boom in agriculture and manufacturing sector
In the second quarter, agriculture, fisheries and forestry sectors have gained momentum. According to the data, the agriculture sector recorded the highest growth of 3.4 percent and 0.6 percent in the manufacturing sector this quarter.
In contrast, the construction sector declined by 8.6 percent, trade, hotels, transport sector by 15.6 percent, finance, real estate by 8.1 percent and public administration, defense sector by 12.1 percent.