RBI has projected GDP up to 5% in FY20; Sees initial revival signs

New Delhi: With a six-year low of 4.5 per cent in gross domestic product (GDP) in the second quarter and expected to remain muted, the Reserve Bank of India (RBI) on Thursday posted 5 GDP growth for the current fiscal year. Cut the percentage.
In October monetary policy, RBI had projected to grow 6.1 percent of GDP in FY 2019-20.The central bank said that the July-September GDP growth has fallen significantly below the estimate and various high-frequency indicators suggest that domestic and external demand conditions remain weak.
The RBI said in its monetary policy, “However, improving monetary transmission and a quick resolution of global trade tensions are possible for growth projections, delays in reviving domestic demand, slowdown in global economic activity and reduction in geopolitical tensions is.” Statement.The RBI, however, sees a marginal pick up in business sentiments in the Q4 of the current fiscal.
“On the positive side, however, monetary policy easing since February 2019 and the measures initiated by the government over the last few months are expected to revive sentiment and spur domestic demand,” the RBI said.
The Monetary Policy Committee (MPC) noted that economic activity has weakened further and the output gap remains negative.The RBI said, “However, several measures already initiated by the government and by the Reserve Bank are expected to gradually boost monetary easing in the real economy from February 2019 onwards”.

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