India’s economy is on course for the sharpest annual contraction on record, but the latest government estimates suggest that the biggest challenges of the pandemic are behind it, with the economy expected to expand in the fiscal second-half. The Indian economy is projected to contract by a record 7.7% in the year ending 31 March, the first time in more than four decades, the National Statistical Office said in its first advance estimate on Thursday.The forecast for the contraction is steeper than the 7.5% slump estimated by the country’s central bank.
Covid lockdown was imposed in late March, the shock caused Asia’s third-largest economy to shrink by almost a quarter in the June quarter, but economic activity rebounded as the government lifted restrictions, with the pace of contraction slowing to 7.5% in the September quarter.
Courtesyg: Google (photo)
