Data that has become available for Q3 (October-December):2020-21 confirms that the economy is recuperating faster than anticipated, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. Growth is expected to turn positive in the second half (H2)
Nascent signs of recovery have become visible in the second half of 2021 and more sectors are joining the multispeed upturn, Das said.
The RBI has projected real GDP contraction at -7.5 per cent in 2020-21, against the earlier projection of -9.5 per cent.
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Q2 GDP growth has been projected at 0.1 per cent in Q3:2020- 21 (earlier projection of -5.6 per cent) and 0.7 per cent in Q4:2020-21 (0.5 per cent).
GDP growth for H1FY22 has been projected at 21.9 per cent to 6.5 per cent, with risks broadly balanced.
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"The recovery in rural demand is expected to strengthen further, while urban demand is gaining momentum as unlocking spurs activity and employment, especially for labour displaced by COVID-19.
"These positive impulses are, however, clouded by a possible rise in infections in some parts of the country, prompting some local containment measures," the Governor said.