New Delhi: Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, has appreciated the continued accommodative stance by the Reserve Bank of India (RBI) in this very difficult time caused by pandemic COVID-19.
The growth projections by the RBI, such as positive growth in H2 FY2021 and revised real GDP growth rate at (-)7.5%, are inspiring and will build confidence in the economic and business activities, going forward, said Shri Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry in a press statement issued here today.
These growth projections by RBI are very encouraging and in line with our expectations as PHDCCI EBM Index (Economic and Business Momentum Index) released in November 2020 have projected that GDP growth will become positive from Q3 FY 2020-21 at around 0.1% to 2%, around 2% to 4% in Q4 FY 2020-21 and the overall growth for the FY 2020-21 is expected to contract by not more than 7.9% on the back of various effective reforms undertaken by the government during the last six months to lift the economy from the daunting impact of COVID-19, said Mr. Sanjay Aggarwal.
Rural resilience and pent-up of demand activity is supporting the economic activity at this juncture to rejuvenate it from the extreme lows caused by daunting impact of COVID-19, said Shri Sanjay Aggarwal.
We appreciate that RBI’s Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 4% and maintain accommodative stance as long as necessary this year and next financial year to revive growth, mitigate impact of COVID-19 and keep inflation within the target. Reverse repo rate also remains unchanged at 3.35%, said Sh. Aggarwal
The GDP growth will become positive from Q3 FY 2020-21 at around 0.1% to 2% and around 2% to 4% in Q4 FY 2020-21 and the overall growth for the FY 2020-21 is expected to contract by not more than 7.9% on the back of various effective reforms undertaken by the government during the last six months to lift the economy from the daunting impact of COVID-19, said Mr. Sanjay Aggarwal.
The series of stimulus announcements by the Government in last 8 months, totaling to around Rs 29.9 lakh crore, are highly appreciable and will go a long way in our fight against the impact of COVID-19 on trade, industry and economy, said Shri Sanjay Aggarwal.
At this juncture, increased spending on infrastructure will have multiplier effects on the economic growth trajectory by boosting private investments, creating new employment opportunities in the sectors such as steel, cement and power and demand creation in the country, said Sh. Sanjay Aggarwal.
The planned Rs 111 lakh crore investment in the National Infrastructure Pipeline (NIP) has a great potential to boost the GDP growth of the country as correlation between the investment in infrastructure and economic growth is quite high, said Shri Aggarwal.
Going ahead, we expect accommodative stance to continue at least in next financial year and there is further cut in repo rate if inflation comes down, said Shri Aggarwal.
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