The Indian economy, which contracted by 23.9 per cent in the first quarter of the current fiscal due to the impact of the novel coronavirus pandemic, is expected to record a double-digit growth of 10 per cent in fiscal 2021-22, according to a report titled ‘Voice of Asia’ by Deloitte. The contraction, however, narrowed to 7.5 per cent in the second quarter.
Economic activity is showing signs of traction. Stronger car sales, rising production of finished steel and diesel consumption and higher goods and services tax revenue collections indicate that the economy has bounced back strongly since ‘the unlock’, backed by pent-up and festive season demand, the report said.
Sustaining this rebound could be a challenge next year, if coronavirus infection cases continue to be high, it said.
According to the report, three drivers—inclusive job growth, a robust services sector rebound and a sustained recovery in private demand—will ensure a sustained economic revival and rehabilitation. The government’s effective policy measures together with prudent business strategies should help the economy grow strongly from the next financial year, it added.