Reserve Bank of India Governor Shaktikanta Das said that India's GDP growth is likely to remain in the negative zone in FY21. Governor Das said at the RBI press conference on Friday that the growth might pick up in the second half of FY 2020-21.

"The GDP growth for 2020-21 is expected to remain in the negative territory with some pick up in growth impulses in H2 2021 onwards. The end-May 2020 release of NSO on national income would provide greater clarity, enabling more specific projections of GDP growth in terms of both magnitude and direction. Much will depend on how quickly the COVID curve flattens and begins to moderate. As the nation prepares for this future, the words of Mahatma Gandhi should inspire us to fight on -- We may stumble and fall but shall rise again," said Das.

"A combination of fiscal, monetary, and administrative measures will  help revive the economy in the second half," said the RBI chief.

The Governor warned of a highly uncertain inflation outlook and said that the supply shock in April is likely to persist for the next coming months.

Das said that the biggest blow to the economy has come from the slump in private consumption. Consumer durables production has decreased 33 per cent in the month of March.  He added that the domestic economic activity has been severely contracted in the last two months under the coronavirus lockdown. However, the agricultural sector has offered a ray of hope.

The Governor said that India is facing a crisis as there has been loss in production as well as a crash in demand. Power and fuel consumption has plunged, he said. The top six states contributing to manufacturing is in red, he added.