India’s GDP may turn positive at 1.3 percent in the third quarter of 2020-21, having witnessed contraction in the previous two quarters due to the coronavirus pandemic, as the number of cases is falling and public spending has started rising, according to a report.
The unlocking saw domestic demand benefit from festive tailwinds, pent-up consumption, and pick-up in capacity utilization alongside resumption in sectoral activities, DBS Research said.
The Economic Survey 2020-21 has projected the economy to grow 11 percent in the next fiscal beginning April 1, a shade higher than the RBI’s projection of 10.5 percent. However, the International Monetary Fund (IMF) expects India to grow at 11.5 per cent in 2021.
The government will release the GDP numbers for the October-December quarter of the current fiscal on Friday.
Report by Chetali S M
Reported on – 24/02/2021