Estimates more encouraging than anticipated, says KV Subramanian as GDP rebounds to -7.5% from record pandemic-induced slump
New Delhi | Jagran News Desk: India's Chief Economic Advisor KV Subramanian on Friday said that the GDP estimates for the second quarter are "more encouraging than what was expected, though urged for caution amidst uncertainty in the economic outlook due to the pandemic.
The GDP rebounded to -7.5% in Q2 from the record slump of 23.9 in the April-June quarter due to the nationwide lockdown enforced to contain the spread of novel coronavirus.
"The GDP estimates are more encouraging than what was anticipated by most commentators. Uncertainty in the economic outlook is due to the COVID-19 pandemic and therefore I would urge caution especially given winter months,"Subramanian said.
The CEA added that the country's GDP had picked up momentum in February 2020, and that the Q-1 contraction was primarily due to the stringent lockdown amid the pandemic.
Some sectors have bounced back with resumption of economic activities. The electricity, gas, water supply and other utility services have shown a growth of 4.4 per cent; agriculture, forestry and fishing sector at 3.4 per cent and manufacturing sector showed a marginal growth of 0.6 per cent.
“There is a V-shaped growth patten in all major sectors today. Customer durables, capital and infrastructure look very encouraging. Food inflation is expected to soften in Q3,” he said.
The CEA said that given the uncertainity, it is presently difficult to say whether the GDP will hit positive mark in Q3 or Q4. He said that the economic recovery will continue if pandemic remains in control. The CEA added that the external sector is reflecting that India will be one of the bright spots going forward in terms of growth.
Posted By: Lakshay Raja