Indian economy will grow despite COVID-19, says RBI governor

The Reserve Bank of India (RBI) has said that despite the setback to the Indian economy due to the Covid-19 crisis, India will continue to grow at 1.9% during the current fiscal year.

RBI Governor Shaktikanta Das said that India is “among the handful of countries that is projected to cling on, somewhat tenuously, to a positive growth rate of 1.9 per cent. This is the highest growth rate among the G-20 economies as estimated by the International Monetary Fund (IMF)”.

India is expected to see a sharp turnaround and resume its previous growth trajectory by growing at 7.4% in 2021-22, he added. He also said that India’s central bank has been monitoring the situation very closely.

Today, humanity faces perhaps the trial of its time as Covid-19 grips the world with its deadly embrace. Everywhere as also in India, the mission is to do whatever to takes to prevent the epidemiological curve from steeping any further. In this kind of environment Reserve Bank of India (RBI) has been very proactive and has been monitoring the situation very closely. – Shaktikanta Das, Governor, Reserve Bank of India

Worldwide, the economy everywhere looks grim. China’s economy shrank for the first time since at least 1992 in the first quarter. The pandemic has stopped production and spending, raising pressure on authorities to do more to stop mounting job losses.

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