In the last bi-monthly monetary policy meet for the current, the Reserve Bank of India projected India's GDP growth rate at 10.5 percent for the fiscal year 2021-22.

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The growth outlook has improved significantly, and the vaccination drive will further boost the economic rebound, RBI said on Friday. The apex bank expects the Indian economy to grow in the range of 8.3 percent to 26.2 percent in the first half of FY22, followed by a 6 percent growth in Q3FY22.

Central bank's expectation of GDP growth is lower than that of the Finance Ministry’s 11 percent projection. The Economic Survey, released last week, predicted a V-shaped recovery of the economy, with an 11 percent growth in GDP in FY22. In the current fiscal, the GDP is expected to contract by 7.7 percent.

The Consumer Price Based-Inflation moved below 6 percent to 4.3 percent in Q3FY21 for the first time since lockdown was announced. The fall in CPI was supported by falling vegetable prices and a favorable base. RBI expects vegetable prices to remain soft in the near term.

Governor Das projected the CPI to be at 5.2 percent for Q4FY21 against the 5.8 percent forecasted earlier. He also revised consumer price inflation to 5-5.2 percent for the first half of FY22, against 5.2-4.6 percent forecasted earlier.

In the last bi-monthly monetary policy meet for the current fiscal, the MPC unanimously voted to keep the policy rates unchanged.

Follow our live blog on the RBI monetary policy here.

First Published:Feb 5, 2021 10:11 AM IST