India’s economy could contract 7.7 per cent in the financial year that ends on March 31, pulled down mainly by the coronavirus pandemic and the weeks-long nationwide lockdown to contain the disease, Chief Economic Advisor Krishnamurthy Subramanian has estimated in the Economic Survey 2020-21, tabled in Parliament on Friday. Real GDP growth could be 11 per cent in the next financial year, the survey said.
"Agriculture has remained the silver lining, while contact-based services, manufacturing and construction sectors were the worst hit by the COVID-19 pandemic,” said the survey. It predicted a V-shaped economic recovery spurred by India's Covid-19 vaccination programme.
The survey sees headline inflation moderating going forward: a development that could open up room for the Reserve Bank of India to resume monetary policy easing to complement fiscal measures to support the economy, said a Bloomberg report.
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First Published: Fri, January 29 2021. 13:19 IST