India’s Gross Domestic Product (GDP) is expected to witness a growth of 11 per cent in the fiscal year starting on April 1, as it makes a ‘V-shaped’ recovery on the back of countrywide coronavirus vaccination drive and increased consumer demand, said the Economic Survey 2020-21 on Friday.
The document was tabled by Finance Minister Nirmala Sitharaman in Lok Sabha earlier in the day.
The GDP is projected to contract by a record 7.7 per cent in the current fiscal ending March 31, 2021, deepest contraction in four decades.
India witnessed its last annual contraction of 5.2 per cent in fiscal year 1979-80
Despite a V-shaped recovery and countrywide coronavirus vaccination programme, the government cautioned that it may take at least two years before the country reach its per-pandemic GDP levels.
The Economic Survey 2020-21 said the agriculture sector is the only silver lining while services, manufacturing and construction were most hit by the lockdown that was imposed to curb the outbreak of the COVID-19 pandemic.
“After an estimated 7.7 per cent pandemic-driven contraction in 2020-21, India”s real GDP is projected to record a growth of 11.0 percent in 2021-22 and nominal GDP by 15.4 per cent. These conservative estimates reflect upside potential that can manifest due to the continued normalisation in economic activities as the rollout of COVID-19 vaccines gathers traction,” the Survey said.