The RBI has slashed its GDP estimate for 2021-22 by one per cent to 9.5 per cent

The effect of the second wave of the corona

GDP is projected to grow at 18.5 per cent in the first quarter, 7.9 per cent in the second quarter, 7.2 per cent in the third quarter and 6.6 per cent in the fourth quarter.

Inflation is likely to be 5.1 per cent in 2021-22

MUMBAI: The Reserve Bank of India (RBI) has slashed its previous GDP estimate for the current financial year 2021-22 by one per cent. According to the RBI, GDP is projected to grow at 9.5 per cent in the current financial year.

Earlier, the RBI had projected GDP growth at 10.5 per cent in the current financial year. Estimates of GDP have been slashed following the mini-lockdown imposed by the second wave of the Corona, which caused damage to the economy.

RBI Governor Shaktikanta Das, citing various factors, said the second wave would have the same adverse effect on the economy as the first wave.

According to Das, GDP is projected to grow at 9.5 per cent in the current financial year, taking into account various factors. He said GDP is projected to grow at 18.5 per cent in the first quarter, 7.9 per cent in the second quarter, 7.2 per cent in the third quarter and 6.6 per cent in the fourth quarter.

Due to the Corona epidemic, the GDP in the financial year 2020-21 has been minus 7.3 percent. The RBI has also announced Rs 50,000 crore assistance to All India Financial Institutes, including SIDBI, in the financial year 2021-22.

The RBI also said that inflation is projected at 5.1 per cent in the current financial year on the back of good monsoon progress and steps taken by the government to supply essential commodities. However, the RBI has said that if commodity prices rise globally, inflation could rise above the target. The RBI did not make any change in interest rates at today's meeting on interest rates.