Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said India is expected to post a sharp turnaround in the financial year 2021-22. Quoting projections made by the International Monetary Fund (IMF), Shaktikanta Das said the IMF’s projection of 1.9 per cent GDP growth for India is the highest among G-20 nations.
The G-20 is made up of 19 countries and the European Union. The 19 countries are Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, Mexico, the Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, the UK, and the US.
Das said on April 14, the IMF released its global growth projections and said in 2020, the world economy is expected to plunge into the worst recession since the Great Depression. “IMF has named it the ‘Great Lockdown’ and has estimated a loss of $9 trillion to the global economy. This amount is greater than the economies of Japan and Germany combined,” he said.
The RBI Governor said, “India is among the handful of countries which is projected to somehow cling on to a positive growth rate at 1.9 per cent. In fact, this is the highest GDP growth rate among the G-20 economies as estimated by the IMF”.
He said the RBI is regularly monitoring the situation that is developing out of the COVID-19 outbreak and from time-to-time is making announcements.
However, speaking about the impact of the COVID-19 pandemic on the Indian economy, Das said since March 27, the macroeconomic and financial landscape have “deteriorated precipitously” in some areas but might still swim through in some others.
The contraction in exports in March at 34.6 per cent is much more severe than the global financial crisis of 2008-09, Das said.
He added that the production of automobiles and their sales has declined sharply in March and that the country’s electricity demand too has fallen sharply.