GDP estimates signal upside potential for Indian economy this fiscal: CEA

Chief Economic Adviser K V Subramanian on Friday said there is an "upside potential" in the estimates about the economy during the current financial year as recovery is taking faster than expected.

Giving outlook for the near future, he said, "We should be cautiously optimistic and the caution is warranted because economic impact is primarily due to the pandemic."

Given the uncertainty, he said, it is difficult to predict if positive territory can be hit in the third or fourth quarter of this fiscal.

"I would say that the given what we have seen in Q1 and Q2 and with the optimism that is being seen in the estimates, I do see upside potential in that estimate given the good recovery that is happening," he said when asked about growth estimates for the entire financial year.

He further said that food inflation is expected to soften in the third quarter and it is something which has to be tracked closely.