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RBI Forecasts 9.5 Per Cent Plunge In Real GDP In FY 2020-21, Rural Demand To Lead Recovery

As the economy somewhat stabilises after a 23.9 per cent plunge in the GDP in the April-June quarter marred by the nationwide lockdown, Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday (9 October) said that the deep contractions of Q1 are behind us and the real GDP may decline by 9.5 per cent in the financial year 2020-21.

Addressing the media after the Monetary Policy Committee’s meeting, the RBI Governor has said that the modest recovery in various high-frequency indicators in September 2020 could strengthen further in the second half of 2020-21 with progressive unlocking of economic activity.

“Agriculture and allied activities could well lead the revival by boosting rural demand, ” he added.

Das said that relative to pre-Covid levels, several high frequency indicators are pointing to the easing of contractions in various sectors of the economy and the emergence of impulses of growth.

“By all indications,

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