India may beat recession even as new virus cases loom
Published On: Friday, February 26, 2021 | By: Team KnowMyStock
some of the gains. However, Data shows gross domestic product expanded 0.6% in the three months ended December, after contracting for two consecutive quarters, according to the median forecast in a Bloomberg survey of economists. That will help Asia’s third-largest economy exit an unprecedented recession. India will become one of the few major economies to post growth in the last quarter of 2020, with any improvement in the economy’s performance inversely tied to a drop in Covid-19 infections. But the nation has seen an uptick in cases over the last few weeks raising the risk of a new round of localised lockdowns. New curbs on the movement of people or restrictions on businesses are a risk to the nascent recovery, given that gains in the October-December quarter probably came from the reopening of the economy, which is primarily driven by domestic consumption. The government also boosted spending in the final months of last year to spur growth.
As a result, economists expect the Statistics Ministry to revise its estimate for the fiscal year through March to a contraction of 7% from a steeper 7.7% drop seen previously.
Tags: Indian economy GDP
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