New Delhi, June 8 (IANS) India’s economic recovery is likely to be lower than expected due to global phenomena and inflation, a number of rating agencies have said. The Reserve Bank of India has retained its previous estimate. GDP of India The RBI had earlier forecast that it would see a growth of 7.2. At its MPC meeting on Wednesday morning, the RBI has taken a similar stand.
According to RBI estimates, the GDP rate is expected to decline gradually over the four quarters of this financial year. In the first period, the percentage was Rs. 16.1 per cent in the second period. 6.2 per cent in the third period. 4.1% and 4% growth in the fourth quarter. It is thought to grow by 4 percent.
In the wake of the low incidence of the Kovid epidemic, the increase in physical contact services is likely to increase the consumption of urban residents. RBI governor Shaktikanta Das expects economic activity in rural areas to slow down amid rising agriculture and good monsoon.
The RBI has hiked interest rates twice in a row. After the Kovid epidemic, the RBI has repeatedly lowered repo and other rates. The decision to raise the repo rate was made at the last MPC meeting. Repo rates are up even today. The move by the RBI to bring inflation under control is expected.
The International Monetary Fund (IMF) on Tuesday slashed its estimate of India’s GDP growth rate. Previously, it was only about 100%. The IMF, which forecasted a GDP growth of 9 per cent, has now raised that rate to around 100 per cent. Reduced to 8.2 expressed the estimate.
Moody’s, S&P Global Rating, Fitch and ADB have also been of the view that India’s GDP may not grow as expected.
