India's chief economic adviser sees an “upside potential” for the Indian economy due to faster-than-expected recovery from the pandemic-induced crisis.
“We should be cautiously optimistic and the caution is warranted because economic impact is primarily due to the pandemic,” CEA Krishnamurthy Subramanian said on Friday, giving a near-term outlook on the economy.
Given the uncertainty, he said, it is difficult to predict if India's GDP will expand in the third or fourth quarter of 2020-21. "I would say that the given what we have seen in Q1 and Q2, I do see upside potential...given the good recovery that is happening," he said.
The Indian economy contracted for the second straight quarter in July-September, albeit at a slower pace, as restrictions to curb the spread of the Covid-19 pandemic were eased and economic activity resumed.
India's real GDP fell to 7.5% in the July-September quarter compared to a contraction of 23.9% in the three months ended June, showed data released by the Ministry of Statistics and Programme Implementation Friday. India's gross domestic product at current prices was estimated at Rs 47.22 lakh crore, showing a contraction of 4.0%.
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In gross value added terms, the Indian economy contracted 7% compared to a contraction of 22.8% last quarter.
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