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The Reserve Bank of India (RBI) projected the economy to expand at 10.5% in the coming financial year of 2021-22 based on its reading of firming growth impulses that include improved capacity utilization and energy demand.
There are other events that augur well for the economy. These include resilience of rural demand; an expected strengthening of demand in urban centers on the back of vaccination and dip in covid-19 infections; and acceleration of public investment through the Aatmanirbhar schemes although private investment remains sluggish.

“Demand has now moved beyond pent-up demand to actual demand coming up as the lockdown gets steadily lifted and movements are allowed within cities and across the country. Therefore, demand will pick up," said Shaktikanta Das, governor, Reserve Bank of India at a post-policy press conference.
Das reiterated that what we are witnessing is no more pent-up demand and the demand curve is expected to be much more sustained now.
That apart, lending activity to companies seems to have picked up as well. Das pointed out that the flow of financial resources to the commercial sector has been improving, particularly in non-food bank credit and commercial paper (CPs), credit by housing finance companies, private placement of corporate bonds and foreign direct investment.