India's GDP to grow 10.5% in 2021-22: RBI Governor

New Delhi: In line with the Union Budget 2021, the Reserve Bank of India (RBI) today projected a GDP growth rate of 10.5 per cent for the financial year beginning 1 April. "RBI projects GDP at 10.5% in FY22," RBI chief said.

He said the growth outlook has improved significantly and the vaccination drive will help the economic rebound.

Das further said the economy will rebound to 10.5 per cent in the next financial year.

India was hit hard by the pandemic, suffering the worst contraction in the June quarter, and the GDP is projected to contract by a record 7.7 per cent in the current fiscal ending March 31, 2021. The Pre-Budget Economic Survey predicted a "V-shaped" recovery, saying that the Indian economy will rebound, with 11 per cent growth, in the next financial year.

The Reserve Bank of India (RBI) has held policy rates at 4 per cent in today's monetary policy committee announcement. This is the first monetary policy announcement after the presentation of the Union Budget on February 1.