New Delhi: RBI Governor Shaktikanta Das on Thursday said that the real GDP growth will remain in the negative zone. “Real GDP in the first half of the year is expected to remain in the contraction zone. For the year 2021 as a whole real GDP growth is also estimated to be negative,” RBI Governor Shaktikanta Das said while announcing the decisions taken by the central bank’s Monetary Policy Committee (MPC). Also Read - RS Passes Banking Amendment Bill 2020, Co-op Banks to Function Under RBI's Supervision Now | Key Points
The Central bank also said that inflation is expected to be at elevated levels during the second quarter, but may ease in the second half of the current fiscal year. Also Read - COVID Impacted Economy, May See Gradual Recovery: RBI Governor Shaktikanta Das
Supply chain disruptions persist, resulting in inflation pressures across segments, Shaktikanta Das said. Also Read - RBI Issues Norms For Banks to Appoint Chief Compliance Officers
He also said that global economic activity has remained fragile and the surge in COVID-19 cases has subdued early signs of revival.
Pinning hope on the agriculture sector, he said, Kharif crop harvest is expected to boost rural demand.
Economic activity had started to recover, but a surge in coronavirus infections has forced imposition of lockdowns, he added.