Indian economy is likely to rebound with an 8.9 per cent growth in the fiscal year beginning April 2021 after economic activity showed significant improvement in the last quarter, IHS Markit said on Friday.
The National Statistical Organisation (NSO) on Thursday predicted that the economy will contract 7.7 per cent in the current financial year ending in March, the worst performance in four decades.
“The Indian economy suffered a severe recession in 2020,” IHS Markit said in a note. “The worst contraction occurred during the period from March until August, with the economy having shown a strong rebound in economic activity since September.”
The GDP contracted by a record 23.9 per cent in the April-June quarter following a national lockdown to prevent the spread of the coronavirus. The contraction came down to 7.5 per cent in the September quarter.
“During the fourth quarter of 2020, India’s industrial production and consumption expenditure have shown a rebound.
“October data showed that industrial production grew by 3.6 per cent year-on-year compared with a steep contraction of -55.5 per cent in April 2020,” IHS said.
Stating that there has been a marked