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India’s GDP growth in 2020-21 expected to remain in negative territory, says RBI governor

GMK Staff by GMK Staff
May 22, 2020
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New Delhi: Reserve Bank of India Governor Shaktikanta Das announced a cut in the repo rate by 40 basis points to 4%. This comes days after Finance Minister Nirmala Sitharaman gave details of the Rs 20-lakh-crore economic relief package announced by Prime Minister Narendra Modi to help the economy recover.

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Das says the GDP growth in 2020-’21 is estimated to remain in the negative territory.

He said that,  agriculture sector has been a beacon of hope. “By May 10, kharif sowing was higher by 44% compared to the last year,” he adds. “Rabi procurement in full flow benefiting the bumper harvest. Will support farm income.”

Das adds that the top six industrialised states in India, which account for 60% of industrial output, are largely in red and orange zones.

The RBI governor says economic activity has been affected severely due to the nationwide lockdown.

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