The Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday said that the high frequency indicators were emitting mixed signals and the RBI would closely monitor all incoming data to assess the impact of the second COVID-19 wave on macroeconomic and financial conditions.
He added that the inflation for the rest of the year would be influenced by COVID-19 restrictions and the impact of localised containment measures, but does not expect any wide variation from the earlier inflation estimate.
Meanwhile, many brokerages have brought down their growth estimates for India on the back of the second COVID wave. S&P Global slashed its India GDP growth forecast for FY22 to 9.8 percent from its earlier forecast of 11 percent in April. It added that in worst case scenario, the hit would be 2.8 percentage points, with growth of 8.2 percent.
To discuss India's macroeconomic situation, Latha Venkatesh spoke to Samiran Chakraborty, chief economist at Citi; Soumya Kanti Ghosh, chief economic advisor at SBI and DK Joshi, chief economist at Crisil.Watch video for more.