Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday that the central bank is positive about 9.5 per cent GDP growth estimate for the current financial year.
Speaking in a media event, Mr Das said that several economic indicators were showing upward growth due to opening up of economic activities and this gives RBI confidence that the GDP growth will be in the estimated range in 2021-22.
He said that the debilitating impact of the second wave of Coronavirus infection was on the wane and economic growth will be better from the second quarter onwards.
The central bank governor further said that RBI has decided to focus more on growth due to the conditions created by the pandemic and will operate in the 2 per cent to 6 per cent inflation band set by the government for it.
He even indicated that RBI would like to gradually achieve the 4 per cent inflation target over a period of time and ruled out any sustained increase in inflation.
On cryptocurrencies, Mr Das said the RBI has conveyed its “serious and major concerns” about digital currency to the government and now the government will have to decide on how to deal with the proliferation of such platforms.
He said that we need “credible answers” on contribution of private cryptocurrencies to the Indian economy going forward.