RBI sees economy shrinking 9.5% this fiscal, announces fresh measures to arrest the downtrend

RBI sees economy shrinking 9.5% this fiscal, announces fresh measures to arrest the downtrend

• By Staff Writer

RBI sees economy shrinking 9.5% this fiscal, announces fresh measures to arrest the downtrend

In a grim message for the economy, RBI governor Shaktikanta Das said today at the central bank's monetary policy meet that India's GDP for FY21 is likely to contract 9.5%.

There may be a strong rebound following that, Das added on a note of cautious optimism.

Contraction in economic growth of the size of Q1 is behind us, he said while emphasising that some silver linings are already visible. To drive his point home, he highlighted the uptick in manufacturing sector and energy consumption, among others.

There, however, were a few hits after the rate cut miss. To help the economy emerge from the grievous blows inflicted by the pandemic, governor Das announced a range of new, unconventional measures to push economic activity. These include:

— One major announcement was that the Reserve Bank of India (RBI) will make real-time gross settlement (RTGS) 24x7x365 from December.

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Note: - As every caution has been taken to provide our readers with most accurate information and honest analysis. Please check the pros and cons of the same before making any decision on the basis of the shared details.