Move over China, it is India which is the new superstar of the global economy. India is expected to be the fastest growing economy in this decade, that's what's the latest Nomura report said that its expects India to maintain a 6.6% average growth till 2030.

India: Leading light of the global economy, to replace China as World's growth engine

According to a report by Nomura, India is in a sweet spot with the economy set for its strongest growth phase since financial year 2010. Molly Gambhir tells you more.

Gravitas: India to replace China as the 'high flying' geese

The India growth story is alive and kicking. India's economy beat expectations to grow at 6.1% between January and March 2023 that not all, the government now estimates that the economy grew at 7.2% between April 2022 and March 2023.

India's economy beats estimates in Q4 of 2023 | World Business Watch

While the world grapples with the tremors of a banking crisis in the United States, India stands tall as a beacon of resilience and economic strength. Despite the challenges posed by external factors, India's growth trajectory remains steadfast, supported by a robust banking sector and a steadfast commitment to financial stability.

In its latest assessment cited by Reuters, the Reserve Bank of India (RBI) revealed that India's economy has sustained the growth momentum witnessed in the previous fiscal quarter of 2022-23. This steadfast progress is a testament to the country's ability to weather storms and adapt to shifting global dynamics.

With a keen focus on managing risks and enhancing governance, the RBI, India's central bank, convened a meeting with senior management of government-owned banks to reinforce the importance of prudence and preparedness. The central bank urged lenders to strengthen their boards and fortify risk management frameworks, ensuring the early identification of potential vulnerabilities.

Amidst a high growth in credit and a surge of over 15 percent in loan demand compared to the previous year, the RBI cautioned that such rapid expansion could expose banks to the risk of bad loans. However, it also emphasized the need for continued financial and operational resilience, highlighting India's proactive approach to risk management.

Domestic Surge Amid Global Downfall

India's services exports have demonstrated commendable growth, with March witnessing a 13.1 percent year-on-year rise to $30.48 billion. This positive trend continued in April, as provisional government data indicated a further increase to $30.36 billion. Such resilience in the services sector significantly contributes to India's economic stability, serving as a buffer against external volatilities.

While the US banking crisis sends ripples across the global financial landscape, India's banking system remains largely insulated. The country's prudent lending practices and diligent risk management have shielded it from the worst effects of the crisis, allowing it to maintain steady growth and protect the interests of depositors and borrowers.

India's commitment to capital expenditure and public spending further bolsters its economic resilience. With a renewed focus on investment activity, the nation is set to benefit from increased capital expenditure and moderation in commodity prices. These factors, coupled with a revival in rural demand and the buoyancy of manufacturing, contribute to India's positive growth outlook and ability to withstand external shocks.

Inputs from Reuters)

While the world grapples with the tremors of a banking crisis in the United States, India stands tall as a beacon of resilience and economic strength. Despite the challenges posed by external factors, India's growth trajectory remains steadfast, supported by a robust banking sector and a steadfast commitment to financial stability.

While the world grapples with the tremors of a banking crisis in the United States, India stands tall as a beacon of resilience and economic strength. Despite the challenges posed by external factors, India's growth trajectory remains steadfast, supported by a robust banking sector and a steadfast commitment to financial stability. In its latest assessment cited by Reuters, the Reserve Bank of India (RBI) revealed that India's economy has sustained the growth momentum witnessed in the previous fiscal quarter of 2022-23. This steadfast progress is a testament to the country's ability to weather storms and adapt to shifting global dynamics. With a keen focus on managing risks and enhancing governance, the RBI, India's central bank, convened a meeting with senior management of government-owned banks to reinforce the importance of prudence and preparedness. The central bank urged lenders to strengthen their boards and fortify risk management frameworks, ensuring the early identification of potential vulnerabilities. Amidst a high growth in credit and a surge of over 15 percent in loan demand compared to the previous year, the RBI cautioned that such rapid expansion could expose banks to the risk of bad loans. However, it also emphasized the need for continued financial and operational resilience, highlighting India's proactive approach to risk management. Domestic Surge Amid Global Downfall India's services exports have demonstrated commendable growth, with March witnessing a 13.1 percent year-on-year rise to $30.48 billion. This positive trend continued in April, as provisional government data indicated a further increase to $30.36 billion. Such resilience in the services sector significantly contributes to India's economic stability, serving as a buffer against external volatilities. While the US banking crisis sends ripples across the global financial landscape, India's banking system remains largely insulated. The country's prudent lending practices and diligent risk management have shielded it from the worst effects of the crisis, allowing it to maintain steady growth and protect the interests of depositors and borrowers. India's commitment to capital expenditure and public spending further bolsters its economic resilience. With a renewed focus on investment activity, the nation is set to benefit from increased capital expenditure and moderation in commodity prices. These factors, coupled with a revival in rural demand and the buoyancy of manufacturing, contribute to India's positive growth outlook and ability to withstand external shocks. Inputs from Reuters)

From Crisis to Confidence: RBI Says India's Growth Momentum Shines Bright

While most countries across the globe have entered a slow recession, the Indian economy is expected to grow by 6.7 per cent in the calendar year 2024, emerging as one of the few bright spots, a new UN report has revealed.&nbsp;

The World Economic Situation and Prospects&nbsp;as of mid-2023&nbsp;report released on Tuesday said India's economy is expected to expand by 5.8 per cent in 2023 and 6.7 per cent in 2024.&nbsp;

It, however, added that&nbsp;higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023.&nbsp;

The report noted that while most central banks in the region hiked interest rates in early 2023 to tackle inflation and stabilise exchange rates, the Reserve Bank of India (RBI) applied the brakes after six consecutive hikes, accounting for a cumulative&nbsp;increase of 250 basis points since May last year.&nbsp;

"We have kept the policy rate unchanged, this decision was taken based on our assessment of the macroeconomic and financial conditions with reference to information available," said RBI Governor Shaktikanta Das at the time.&nbsp;

The growth projection for India is in line with the estimate made in&nbsp;World Economic Situation and Prospects 2023 report launched earlier this year.&nbsp;The January report said&nbsp;India's GDP is projected to grow to 5.8 per cent in 2023.&nbsp;

<a href="https://www.wionews.com/india-news/rbi-applies-brakes-on-repo-rate-hike-keeps-it-unchanged-at-65-579686">ALSO READ |&nbsp;RBI applies brakes on repo rate hike, keeps it unchanged at 6.5%</a>

<h2>India is the bright spot</h2>

Hamid Rashid, chief of the&nbsp;Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs, commenting on the findings of the report said India remained a 'bright' spot on the horizon.&nbsp;

“India remains a bright spot. Our projection for India hasn't changed since January and we see many positives, including the inflation has come down significantly. We are pretty confident with our forecast right now for the year,” he was quoted as saying by PTI.

<a href="https://www.wionews.com/videos/from-cars-to-homes-spending-in-india-booms-as-countries-battle-rising-inflation-526322">WATCH |&nbsp;From cars to homes, spending in India booms as other countries battle rising inflation</a>

<iframe allowfullscreen="" autoplay="1" frameborder="0" height="350" src="https://www.wionews.com/videos/from-cars-to-homes-spending-in-india-booms-as-countries-battle-rising-inflation-526322/embed" width="560"></iframe>

<a href="https://www.wionews.com/india-news/india-wpi-falls-into-negative-for-first-time-since-july-2020-govt-cites-high-base-effect-as-the-reason-592827#" id="jqclosemark">×</a>

<h2>Inflation rate based on WPI</h2>

Rashid may have been referring to the release of the Wholesale Price Index (WPI) which fell to a new&nbsp;three-year low of&nbsp;(-) 0.92 per cent in April. According to data released by the&nbsp;Ministry of Commerce and Industry on Monday, this is the first instance after July 2020 that the inflation rate based on WPI has slipped into negative territory.&nbsp;

"Decline in the rate of inflation in April 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical &amp; chemical products, rubber &amp; plastic products and paper &amp; paper products," the government noted.&nbsp;

According to the UN report, inflation in India is expected to decelerate to 5.5 per cent in 2023 as global commodity prices moderate.&nbsp;

<a href="https://www.wionews.com/india-news/india-wpi-falls-into-negative-for-first-time-since-july-2020-govt-cites-high-base-effect-as-the-reason-592827">ALSO READ |&nbsp;India: WPI falls into negative for first time since July 2020, govt cites high base effect as the reason</a>

While India grows rapidly,&nbsp;the world economy is expected to lag, despite a slight uptick from previous gloomy predictions.&nbsp;

"The world economy is now projected to grow by 2.3 per cent in 2023 (+0.4 percentage points from the January forecast) and 2.5 per cent in 2024 (-0.2 percentage points), a slight uptick in the global growth forecast for 2023," read the report.&nbsp;

(With inputs from agencies)

WATCH WION LIVE HERE:&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

While most countries across the globe have entered a slow recession, the Indian economy is expected to grow by 6.7 per cent in the calendar year 2024, emerging as one of the few bright spots, a new UN report has revealed.

While most countries across the globe have entered a slow recession, the Indian economy is expected to grow by 6.7 per cent in the calendar year 2024, emerging as one of the few bright spots, a new UN report has revealed. The World Economic Situation and Prospects as of mid-2023 report released on Tuesday said India's economy is expected to expand by 5.8 per cent in 2023 and 6.7 per cent in 2024. It, however, added that higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023. The report noted that while most central banks in the region hiked interest rates in early 2023 to tackle inflation and stabilise exchange rates, the Reserve Bank of India (RBI) applied the brakes after six consecutive hikes, accounting for a cumulative increase of 250 basis points since May last year. "We have kept the policy rate unchanged, this decision was taken based on our assessment of the macroeconomic and financial conditions with reference to information available," said RBI Governor Shaktikanta Das at the time. The growth projection for India is in line with the estimate made in World Economic Situation and Prospects 2023 report launched earlier this year. The January report said India's GDP is projected to grow to 5.8 per cent in 2023. ALSO READ | RBI applies brakes on repo rate hike, keeps it unchanged at 6.5% India is the bright spot Hamid Rashid, chief of the Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs, commenting on the findings of the report said India remained a 'bright' spot on the horizon. “India remains a bright spot. Our projection for India hasn't changed since January and we see many positives, including the inflation has come down significantly. We are pretty confident with our forecast right now for the year,” he was quoted as saying by PTI. WATCH | From cars to homes, spending in India booms as other countries battle rising inflation × Inflation rate based on WPI Rashid may have been referring to the release of the Wholesale Price Index (WPI) which fell to a new three-year low of (-) 0.92 per cent in April. According to data released by the Ministry of Commerce and Industry on Monday, this is the first instance after July 2020 that the inflation rate based on WPI has slipped into negative territory. "Decline in the rate of inflation in April 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical & chemical products, rubber & plastic products and paper & paper products," the government noted. According to the UN report, inflation in India is expected to decelerate to 5.5 per cent in 2023 as global commodity prices moderate. ALSO READ | India: WPI falls into negative for first time since July 2020, govt cites high base effect as the reason While India grows rapidly, the world economy is expected to lag, despite a slight uptick from previous gloomy predictions. "The world economy is now projected to grow by 2.3 per cent in 2023 (+0.4 percentage points from the January forecast) and 2.5 per cent in 2024 (-0.2 percentage points), a slight uptick in the global growth forecast for 2023," read the report. (With inputs from agencies) WATCH WION LIVE HERE:

India to grow 6.7% in 2024, remain one of the few 'bright spots': UN report

India's growth has slowed in October-December quarter to 4.4% from last year. Economy in India is losing momentum as rising interest rates have started to hurt demand. Asia's largest economy, India, is likely harmed by falling consumption.

India's economy losing momentum on rate hikes; to grow 7% in FY 2022-23, says Indian Government

While economies are staring at a possible recession but the growth is likely to come back by the end of the current year - this comes from Gita Gopinath, the first Deputy Managing Director of International Monetary Fund. In an exclusive conversation, she shared India's role in the current economic environment.

WION at Davos 2023: Gita Gopinath gives message on world economy

Expressing optimism over India’s GDP performance in the second quarter, country’s Chief Economic Adviser (CEA) K V Subramanian on Tuesday said the Asia’s third-largest economy is expected to register double-digit growth in the current financial year, aided by rising demand and a robust banking sector.

He also said India is expected to grow at 6.5 to 7 per cent in 2022-23 and over 7 per cent thereafter.

“India is likely to have a double-digit growth this year; overall growth for the first half has been 13.7 per cent. So, even a little more than 6 per cent growth in the subsequent quarters should be able to deliver double-digit growth for this year; India's expected to grow 6.5-7 per cent in 2022

India's GDP growth soared by 8.4 per cent in the second quarter of 2021-22, with the economy surpassing the pre-COVID level, official data showed on Tuesday.

With regards to fiscal deficit, he said the Budget estimate is likely to be met.

Also read |<a href="https://www.wionews.com/india-news/india-grows-fastest-among-major-economies-gdp-expands-84-per-cent-in-second-quarter-433054">&nbsp;India grows fastest among major economies, GDP expands 8.4 per cent in second quarter</a>

The government estimates fiscal deficit at 6.8 per cent of the gross domestic product (GDP) for the current financial year ending on March 31, 2022.

“Formal sector has emerged well from Covid crisis, informal sector, even though it's been impacted, the nature of its production means that it'll be less impacted. Financial sector has emerged stronger and manufacturing sector shows that India in this decade should grow,” said Subramanian, whose tenure ends on December 6.

“Compared to 2020, there has been a 38.3% increase in capital expenditure in the first half of 2021, which is noteworthy. Since capital expenditures are much higher this year, it's important to understand the inflation dynamics," he added.

(With inputs from agencies)

Expressing optimism over India’s GDP performance in the second quarter, country’s Chief Economic Adviser (CEA) K V Subramanian on Tuesday said the Asia’s third-largest economy is expected to register double-digit growth in the current financial year, aided by rising demand and a robust banking sector.

Expressing optimism over India’s GDP performance in the second quarter, country’s Chief Economic Adviser (CEA) K V Subramanian on Tuesday said the Asia’s third-largest economy is expected to register double-digit growth in the current financial year, aided by rising demand and a robust banking sector. He also said India is expected to grow at 6.5 to 7 per cent in 2022-23 and over 7 per cent thereafter. “India is likely to have a double-digit growth this year; overall growth for the first half has been 13.7 per cent. So, even a little more than 6 per cent growth in the subsequent quarters should be able to deliver double-digit growth for this year; India's expected to grow 6.5-7 per cent in 2022 India's GDP growth soared by 8.4 per cent in the second quarter of 2021-22, with the economy surpassing the pre-COVID level, official data showed on Tuesday. With regards to fiscal deficit, he said the Budget estimate is likely to be met. Also read | India grows fastest among major economies, GDP expands 8.4 per cent in second quarter The government estimates fiscal deficit at 6.8 per cent of the gross domestic product (GDP) for the current financial year ending on March 31, 2022. “Formal sector has emerged well from Covid crisis, informal sector, even though it's been impacted, the nature of its production means that it'll be less impacted. Financial sector has emerged stronger and manufacturing sector shows that India in this decade should grow,” said Subramanian, whose tenure ends on December 6. “Compared to 2020, there has been a 38.3% increase in capital expenditure in the first half of 2021, which is noteworthy. Since capital expenditures are much higher this year, it's important to understand the inflation dynamics," he added. (With inputs from agencies)

India to register double-digit growth this year, says govt’s chief economic advisor

India’s federal cabinet on Wednesday approved an aid package for its cash-strapped telecommunications sector, including a four-year moratorium on radio wave payments owed to the government, the country’s telecommunications minister said.

The deferred payment cycle will begin in October. On January 1, Telecom Minister Ashwini Vaishnaw said at a press conference, giving Debt-burdened Vodafone Idea, which previously said it risks a shutdown without government help, more time to pay off bills. dues.

Vodafone Idea shares rose 2.9 per cent on the news, while Bharti Airtel closed 4.5 per cent in a broader Mumbai market that closed 0.8 per cent higher.

Bharti Airtel and Reliance Jio said the move will boost growth in the telecommunications industry. Vodafone Idea did not respond to a request for comment.

India’s telecoms sector struggled in late 2016 with the entry of billionaire Mukesh Ambani Reliance Jio, sparking a price war that forced some rivals to exit the market and turned profits into losses.

Vaishnaw said the government was changing the controversial definition of adjusted gross income (AGR) to count only telecommunications income.

India had long argued that even companies’ non-telecom revenue was part of AGR, leading to a lengthy legal battle that culminated in 2019 with the Supreme Court sided with government opinion and led to a hefty bill of approximately $ 13 billion for wireless carriers. .

All telecom reforms will apply in the future and not retroactively, Vaishnaw said, meaning that Indian operators have yet to settle billions of dollars in outstanding AGR payments to the government.

Respect for the idea of Vodafone

The measures, which also include a four-year deferral in the payment of AGR dues, will likely alleviate the cash crisis at Vodafone Idea.

The Supreme Court had ordered the companies to settle AGR quotas by 2031.

Vodafone Idea, a combination of Britain’s Vodafone Group’s Indian unit and the national telecommunications firm Idea Cellular, has paid the government $ 1.07 billion(78.54 billion rupees) in AGR installments, but still owes roughly 500 billion.

It has a net debt of 1.91 trillion rupees and the resignation of its billionaire president last month sparked fears that India could be left with just two major operators.

On Wednesday, Vaishnaw said the government did not want a duopoly.

"We believe that there must be healthy competition in the sector. And for that there will be more reforms when the 5G spectrum is auctioned … so that more and more players can enter this sector," said Vaishnaw.

Bharti Airtel has said he paid fees estimated at Rs 180 billion and government figures show he owes another Rs 259.76 billion.

India’s newest operator, Reliance Jio, has already paid its small share of AGR’s fees.

The cabinet also allowed 100 per cent foreign direct investment in the sector through the automatic route, Vaishnaw said, a move that will allow easy investment in the sector without independent government approvals.

The measures announced in the telecommunications package include increasing the tenure of radio waves in the hands of companies to 30 years from the current 20 years, eliminating the charge for use of radio waves acquired through future auctions and sharing the spectrum completely free to operators, Vaishnaw said.

"The relief comes just in time and, at the very least, it will help telecommunications companies navigate the market," said Sonam Chandwani, managing partner at the law firm KS Legal &amp; Associates.

India’s federal cabinet on Wednesday approved an aid package for its cash-strapped telecommunications sector, including a four-year moratorium on radio wave payments owed to the government, the country’s telecommunications minister said.

India’s federal cabinet on Wednesday approved an aid package for its cash-strapped telecommunications sector, including a four-year moratorium on radio wave payments owed to the government, the country’s telecommunications minister said. The deferred payment cycle will begin in October. On January 1, Telecom Minister Ashwini Vaishnaw said at a press conference, giving Debt-burdened Vodafone Idea, which previously said it risks a shutdown without government help, more time to pay off bills. dues. Vodafone Idea shares rose 2.9 per cent on the news, while Bharti Airtel closed 4.5 per cent in a broader Mumbai market that closed 0.8 per cent higher. Bharti Airtel and Reliance Jio said the move will boost growth in the telecommunications industry. Vodafone Idea did not respond to a request for comment. India’s telecoms sector struggled in late 2016 with the entry of billionaire Mukesh Ambani Reliance Jio, sparking a price war that forced some rivals to exit the market and turned profits into losses. Vaishnaw said the government was changing the controversial definition of adjusted gross income (AGR) to count only telecommunications income. India had long argued that even companies’ non-telecom revenue was part of AGR, leading to a lengthy legal battle that culminated in 2019 with the Supreme Court sided with government opinion and led to a hefty bill of approximately $ 13 billion for wireless carriers. . All telecom reforms will apply in the future and not retroactively, Vaishnaw said, meaning that Indian operators have yet to settle billions of dollars in outstanding AGR payments to the government. Respect for the idea of Vodafone The measures, which also include a four-year deferral in the payment of AGR dues, will likely alleviate the cash crisis at Vodafone Idea. The Supreme Court had ordered the companies to settle AGR quotas by 2031. Vodafone Idea, a combination of Britain’s Vodafone Group’s Indian unit and the national telecommunications firm Idea Cellular, has paid the government $ 1.07 billion(78.54 billion rupees) in AGR installments, but still owes roughly 500 billion. It has a net debt of 1.91 trillion rupees and the resignation of its billionaire president last month sparked fears that India could be left with just two major operators. On Wednesday, Vaishnaw said the government did not want a duopoly. "We believe that there must be healthy competition in the sector. And for that there will be more reforms when the 5G spectrum is auctioned … so that more and more players can enter this sector," said Vaishnaw. Bharti Airtel has said he paid fees estimated at Rs 180 billion and government figures show he owes another Rs 259.76 billion. India’s newest operator, Reliance Jio, has already paid its small share of AGR’s fees. The cabinet also allowed 100 per cent foreign direct investment in the sector through the automatic route, Vaishnaw said, a move that will allow easy investment in the sector without independent government approvals. The measures announced in the telecommunications package include increasing the tenure of radio waves in the hands of companies to 30 years from the current 20 years, eliminating the charge for use of radio waves acquired through future auctions and sharing the spectrum completely free to operators, Vaishnaw said. "The relief comes just in time and, at the very least, it will help telecommunications companies navigate the market," said Sonam Chandwani, managing partner at the law firm KS Legal & Associates.

India announces measures to prop up telecom sector; respite for Vodafone Idea

From agrarian crisis to privatisation; demonetisation to the introduction of Goods and Service Tax (GST), from stock markets touching new highs to digitisation; independent India has seen many an economic upheaval.

Was it for good? Did the decisions taken by various governments really help the Indian economy grow? Did India manage to become the golden nation its freedom fighters had dreamt of? The answer to these remains locked in history books and research papers. &nbsp;

In 1947, when India became independent, its Gross Domestic Product was just 2.7 trillion rupees, accounting for 3% of the world's total GDP. According to the latest data by National Statistical Office, "the GDP at current prices in the year 2020-21 is estimated to attain a level of Rs 195.86 lakh crore, as against Rs 203.51 lakh crore in 2019-20, showing a growth rate of -3.8%". [1 lakh crore = 1 trillion]

Here is a look at some key events that changed the shape of the Indian economy. &nbsp;

<h2>1969: Why is this year important? &nbsp;</h2>

1960s were a decade when the country was going through its worst droughts. This led the nation to depend on western countries for food and grain supplies. It was in this period that Prime Minister Indira Gandhi realised the importance of making the country self-sufficient in food grains. Hence, the Green Revolution came into being.

Apart from that, the period holds significance as, during this phase, Mrs Gandhi had nationalised 14 biggest commercial banks "with deposits of over Rs 50 crores nationalised to serve better the needs of development of the economy in conformity with national policy objectives". &nbsp;

As per the Reserve Bank of India, on February 10, 1970, the Supreme Court held the Act void mainly on the grounds that it was discriminatory against the 14 banks and that the compensation proposed to be paid by the government was not fair. Hence, a fresh Ordinance was issued on February 14 which was later replaced by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.

<h2>1991: Liberalisation, privatisation and globalisation</h2>

The journey of the Indian economy is incomplete without this chapter. India had touched rock bottom and was in serious trouble. With the devaluation of the currency, rising fiscal deficit of the government (from 9% of GDP in 1980-81 to 10.4% in 1985-86 and 12.7% in 1990-91), India’s external debt nearly doubled from some $35 billion at the end of 1984-85 to $69 billion by the end of 1990-91.

The country's foreign exchange reserves had dried up to the point that India could barely finance three weeks worth of imports. The situation was so grim that the Indian government had to mortgage some 20 tonnes of gold for $240 million, just to keep the economy afloat.

On the political front, the Chandra Shekhar government gave way to another Congress government, as the party made a comeback after two years. Enter &nbsp;PV Narsimha Rao as prime minister and Manmohan Singh as finance minister. &nbsp;

Within weeks of assuming power, Rao and Singh announced a series of policies that changed the face of Indian economy-- liberalisation, privatisation and globalisation.

These reforms helped the country get freedom from the tough bureaucratic system and opened the doors for more opportunities and foreign financial inflows. Moreover, it led to the boom in stock markets. As per the official yearly data available from the Bombay Stock Exchange (BSE), Sensex ended at 1048.29 in 1990 and jumped to 1908.85 by 1991-end.

While India was celebrating the rise of its economy, there was someone who was benefitting from the loopholes. Enter Harshad Mehta. India's stock market history is incomplete without the story of this man. Mehta changed the whole liquidity market. India's biggest scam of around Rs 4,000 crore led to a market crash of nearly 13% in one day. &nbsp;

<h2>2007-2008: The global crisis: How India reacted</h2>

It was an epic financial and economic collapse that had cost many people their jobs, homes, and savings. The “Great Recession” had brought the whole of Wall Street to its knees. The period marked the largest bankruptcy in U.S. history-- the collapse of Lehman Brothers. While the other countries were facing the worst, how was India reacting to the global pressure? Economic growth in India during FY2008-09 stood at 6.7%. Reportedly, India was less impacted because the exports accounted for just 15% of the GDP.

But, what came in as a surprise was the stimulus package announced by the Manmohan Singh administration. In December 2008, the government decided to seek approval for an additional plan expenditure of Rs 200 billion. "The government also infused about Rs 3 trillion into the system for public spending through a range of measures such as lowering tax and reduction of key rates by the Reserve Bank of India", stated an Economic Times report.

Moreover, this package did not go well for the government. "My government was punished in the 2014 elections after we spent more money in 2009 as part of a stimulus package. Due to this, we had to violate fiscal consolidation norms. The inflation went up to 14% and the rupee lost its value. Finally, people rejected our government", P Chidambaram, the finance minister at the time, was quoted as saying.

Apart from the economy, the Sensex tumbled from more than 20,000 points in Dec 2007 to a little over 9,000 (lowest) in mid-early 2009, before bouncing back to 17,000 in the same year.

<h2>2016: Demonitisation</h2>

After eight years, the word "demonetisation" was introduced in the annals of India’s economic history. Prime Minister Narendra Modi on November 8 of that year declared that Rs 500 and Rs 1,000 notes would not be legal tender. The announcement shook the country, almost everyone from a small vendor to a high-profile businessman was affected. Sensex crashed nearly 1,689 points and Nifty plunged by over 541 points due to the government’s move to withdraw notes of higher denominations.

Just months after demonetisation, the Rajya Sabha (Upper House) passed a crucial bill on Goods and Services Tax (GST). However, at that time, the markets didn't react much and remained mostly flat on the upper side.

<h2>2020: Virus hits the economy</h2>

But, after nearly three years, the country witnessed another jolt: the coronavirus pandemic. According to a report by Azim Premji University, the first wave of COVID-19 pandemic pushed 23 crore people below the poverty line (below the national minimum wage threshold of Rs. 375 per day as recommended by the Anoop Satpathy Committee). The report said there has been a rise of 15% in poverty in rural India and a rise of 20% in urban India during the last one pandemic year.

However, after the second wave, it is still unclear how deep the impact of the pandemic would be on the country's economy. Despite that, the Sensex touched an all-time high of 55,000 and Nifty at 16,529, giving hopes for better and improved days ahead. &nbsp;

From agrarian crisis to privatisation; demonetisation to the introduction of Goods and Service Tax (GST), from stock markets touching new highs to digitisation; independent India has seen many an economic upheaval.

From agrarian crisis to privatisation; demonetisation to the introduction of Goods and Service Tax (GST), from stock markets touching new highs to digitisation; independent India has seen many an economic upheaval. Was it for good? Did the decisions taken by various governments really help the Indian economy grow? Did India manage to become the golden nation its freedom fighters had dreamt of? The answer to these remains locked in history books and research papers. In 1947, when India became independent, its Gross Domestic Product was just 2.7 trillion rupees, accounting for 3% of the world's total GDP. According to the latest data by National Statistical Office, "the GDP at current prices in the year 2020-21 is estimated to attain a level of Rs 195.86 lakh crore, as against Rs 203.51 lakh crore in 2019-20, showing a growth rate of -3.8%". [1 lakh crore = 1 trillion] Here is a look at some key events that changed the shape of the Indian economy. 1969: Why is this year important? 1960s were a decade when the country was going through its worst droughts. This led the nation to depend on western countries for food and grain supplies. It was in this period that Prime Minister Indira Gandhi realised the importance of making the country self-sufficient in food grains. Hence, the Green Revolution came into being. Apart from that, the period holds significance as, during this phase, Mrs Gandhi had nationalised 14 biggest commercial banks "with deposits of over Rs 50 crores nationalised to serve better the needs of development of the economy in conformity with national policy objectives". As per the Reserve Bank of India, on February 10, 1970, the Supreme Court held the Act void mainly on the grounds that it was discriminatory against the 14 banks and that the compensation proposed to be paid by the government was not fair. Hence, a fresh Ordinance was issued on February 14 which was later replaced by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. 1991: Liberalisation, privatisation and globalisation The journey of the Indian economy is incomplete without this chapter. India had touched rock bottom and was in serious trouble. With the devaluation of the currency, rising fiscal deficit of the government (from 9% of GDP in 1980-81 to 10.4% in 1985-86 and 12.7% in 1990-91), India’s external debt nearly doubled from some $35 billion at the end of 1984-85 to $69 billion by the end of 1990-91. The country's foreign exchange reserves had dried up to the point that India could barely finance three weeks worth of imports. The situation was so grim that the Indian government had to mortgage some 20 tonnes of gold for $240 million, just to keep the economy afloat. On the political front, the Chandra Shekhar government gave way to another Congress government, as the party made a comeback after two years. Enter PV Narsimha Rao as prime minister and Manmohan Singh as finance minister. Within weeks of assuming power, Rao and Singh announced a series of policies that changed the face of Indian economy-- liberalisation, privatisation and globalisation. These reforms helped the country get freedom from the tough bureaucratic system and opened the doors for more opportunities and foreign financial inflows. Moreover, it led to the boom in stock markets. As per the official yearly data available from the Bombay Stock Exchange (BSE), Sensex ended at 1048.29 in 1990 and jumped to 1908.85 by 1991-end. While India was celebrating the rise of its economy, there was someone who was benefitting from the loopholes. Enter Harshad Mehta. India's stock market history is incomplete without the story of this man. Mehta changed the whole liquidity market. India's biggest scam of around Rs 4,000 crore led to a market crash of nearly 13% in one day. 2007-2008: The global crisis: How India reacted It was an epic financial and economic collapse that had cost many people their jobs, homes, and savings. The “Great Recession” had brought the whole of Wall Street to its knees. The period marked the largest bankruptcy in U.S. history-- the collapse of Lehman Brothers. While the other countries were facing the worst, how was India reacting to the global pressure? Economic growth in India during FY2008-09 stood at 6.7%. Reportedly, India was less impacted because the exports accounted for just 15% of the GDP. But, what came in as a surprise was the stimulus package announced by the Manmohan Singh administration. In December 2008, the government decided to seek approval for an additional plan expenditure of Rs 200 billion. "The government also infused about Rs 3 trillion into the system for public spending through a range of measures such as lowering tax and reduction of key rates by the Reserve Bank of India", stated an Economic Times report. Moreover, this package did not go well for the government. "My government was punished in the 2014 elections after we spent more money in 2009 as part of a stimulus package. Due to this, we had to violate fiscal consolidation norms. The inflation went up to 14% and the rupee lost its value. Finally, people rejected our government", P Chidambaram, the finance minister at the time, was quoted as saying. Apart from the economy, the Sensex tumbled from more than 20,000 points in Dec 2007 to a little over 9,000 (lowest) in mid-early 2009, before bouncing back to 17,000 in the same year. 2016: Demonitisation After eight years, the word "demonetisation" was introduced in the annals of India’s economic history. Prime Minister Narendra Modi on November 8 of that year declared that Rs 500 and Rs 1,000 notes would not be legal tender. The announcement shook the country, almost everyone from a small vendor to a high-profile businessman was affected. Sensex crashed nearly 1,689 points and Nifty plunged by over 541 points due to the government’s move to withdraw notes of higher denominations. Just months after demonetisation, the Rajya Sabha (Upper House) passed a crucial bill on Goods and Services Tax (GST). However, at that time, the markets didn't react much and remained mostly flat on the upper side. 2020: Virus hits the economy But, after nearly three years, the country witnessed another jolt: the coronavirus pandemic. According to a report by Azim Premji University, the first wave of COVID-19 pandemic pushed 23 crore people below the poverty line (below the national minimum wage threshold of Rs. 375 per day as recommended by the Anoop Satpathy Committee). The report said there has been a rise of 15% in poverty in rural India and a rise of 20% in urban India during the last one pandemic year. However, after the second wave, it is still unclear how deep the impact of the pandemic would be on the country's economy. Despite that, the Sensex touched an all-time high of 55,000 and Nifty at 16,529, giving hopes for better and improved days ahead.

Independence Day: Events that transformed India’s economy

The overall rate of unemployment in March 2021 was 6.5 per cent while the urban unemployment in India is now nearing 12 per cent, the highest in more than 10 months.

India: Economy in shambles; Shortage of vaccines | 7.5 Million people lost their jobs in April

Since December 2020, the country's merchandise exports are recording positive growth. In March this year, the exports rose by 60.29% to $34.45 billion.

India's exports to be in positive territory In 2021-22: Commerce ministry

India is battling second wave of Coronavirus. The ailing economy has recently witnessed green shoots but the state govt's are again gradually heading towards the imposition of lockdown to restrict the spread of virus. The Chief Minister of Delhi yesterday imposed a week long lockdown with some guidelines to manufacturing sectors. Is the manufacturing sector is ready to tackle another lockdown? We have today the President of ACMA, Mr. Deepak Jain who says 'The manufacturing sector is hopeful of managing lockdowns'. Watch the full conversation

Indian economy and second wave of Covid-19

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official.

The International Monetary Fund Deputy Chief Economist, Petya Koeva Brooks, in an interview to PTI on Friday also made a strong case for an additional economic stimulus to address the impact of the pandemic on the country's economy.

"When it comes to India there was a major collapse of output last fiscal year and the number as you mentioned is eight.

"So, we are very glad to see the strong rebound this year with projected growth of 12.5 for fiscal year 21-22 and we are seeing also high-frequency indicators including PMI (Purchasing Managers' Index), and trade and more mobility indicators which give us a sense that there is a continued recovery in the first quarter of this year," she said.

That said, there are some recent emergencies of the new variants in the localised lockdowns that are seen as one of the threats to this recovery, Brooks noted.

On the recovery itself, when it comes to the level in terms of the level of output, we are expecting that level to return to the pre-crisis one from 2019 to this fiscal year. That is what we have in our projections.

"However, if you look at a concept of scarring, which just compares what the level of output would have been hadn't there been a crisis in 2024, which is the measure which we are using. Then at and compare where our current growth trajectory is for India that gap is much larger, Brooks said.

The gap, she said, which is eight per cent of GDP is significantly larger than what it is for the world as a whole.

"For the world as a whole it's about three (per cent), which is another way of saying that even though in the near term we have this real rebound, there's still scope in the coming years to see higher growth which would reduce and hopefully, eliminate that scarring, which we are currently expecting, the top IMF official said in response to a question.

"If we were to just think about the level of output that it was prior to being a pandemic then that catch happens this year, which is not surprising also given the very high level of the underlying high level of growth which India has. But again, if we compare it to the path of what it would have been without the pandemic then we are getting too many larger gaps there, she said.

Noting that the Indian government took several steps to address the COVID-19 crisis, Brooks said, We have seen policy responses, which have been coordinated and in several areas. We have seen that the fiscal support, the monetary easing as well as the liquidity and regulatory measures that were taken."

What makes sense is to maintain the focus on having that coordinated policy response because this is what's going to prevent long-term damage to the economy. Providing that support to small and medium-sized firms as well as vulnerable houses would be particularly important, she said.

Brooks said the IMF very much welcomes the measures that were announced by India during its budget. It is particularly supportive of maintaining the accommodative fiscal stance and also emphasising expenditures on health and infrastructure.

We estimate that the positive impact of the measures for this fiscal year is going to be of the order of point six percentage points on growth, she said, adding that several measures announced in the budget were in line of the IMF's advice.

Prominent among them are that there would not be a withdrawal of fiscal stimulus at the general government level and also that state governments would be given the temporary flexibility to go over their budget ceilings. And last, but not least, the fact that some of the other budget items on food subsidies were actually brought into the budget. Overall, the IMF is very supportive of this focus on growth.

At the same time, Brooks made a strong case for an additional economic stimulus.

We do think that additional fiscal stimulus would be helpful. Focusing that stimulus again on the most vulnerable is something that makes sense to us. We note that some of the income support schemes were not extended beyond November 2020 and such, she said.

Taking measures in that area would be particularly helpful as well as making sure that there's priority spending on education, the economist noted.

Last, but not least, also ensuring that there is a very concrete medium-term fiscal framework is an area where we can see some room for more work in that area, she said.

Now when it comes to monetary policy, we think that given the underlying slack in the economy, maintaining the accommodative monetary policy stance makes sense. This is what we understand is being planned at the moment.

This has been our long-standing recommendation that we see scope for additional policy measures to address the weaknesses in the financial sector, in the banking part in the non-bank part of the financial sector. We think that this is going to be particularly important as we come out of the crisis to have that efficient credit intermediation, which is going to allow the economy to grow, the IMF official said.

Responding to a question on the stimulus package, Brooks underscored the need to essentially have targeted support for households and for the firms that have been most affected is the most efficient and sensible way to provide that support.

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official.

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official. The International Monetary Fund Deputy Chief Economist, Petya Koeva Brooks, in an interview to PTI on Friday also made a strong case for an additional economic stimulus to address the impact of the pandemic on the country's economy. "When it comes to India there was a major collapse of output last fiscal year and the number as you mentioned is eight. "So, we are very glad to see the strong rebound this year with projected growth of 12.5 for fiscal year 21-22 and we are seeing also high-frequency indicators including PMI (Purchasing Managers' Index), and trade and more mobility indicators which give us a sense that there is a continued recovery in the first quarter of this year," she said. That said, there are some recent emergencies of the new variants in the localised lockdowns that are seen as one of the threats to this recovery, Brooks noted. On the recovery itself, when it comes to the level in terms of the level of output, we are expecting that level to return to the pre-crisis one from 2019 to this fiscal year. That is what we have in our projections. "However, if you look at a concept of scarring, which just compares what the level of output would have been hadn't there been a crisis in 2024, which is the measure which we are using. Then at and compare where our current growth trajectory is for India that gap is much larger, Brooks said. The gap, she said, which is eight per cent of GDP is significantly larger than what it is for the world as a whole. "For the world as a whole it's about three (per cent), which is another way of saying that even though in the near term we have this real rebound, there's still scope in the coming years to see higher growth which would reduce and hopefully, eliminate that scarring, which we are currently expecting, the top IMF official said in response to a question. "If we were to just think about the level of output that it was prior to being a pandemic then that catch happens this year, which is not surprising also given the very high level of the underlying high level of growth which India has. But again, if we compare it to the path of what it would have been without the pandemic then we are getting too many larger gaps there, she said. Noting that the Indian government took several steps to address the COVID-19 crisis, Brooks said, We have seen policy responses, which have been coordinated and in several areas. We have seen that the fiscal support, the monetary easing as well as the liquidity and regulatory measures that were taken." What makes sense is to maintain the focus on having that coordinated policy response because this is what's going to prevent long-term damage to the economy. Providing that support to small and medium-sized firms as well as vulnerable houses would be particularly important, she said. Brooks said the IMF very much welcomes the measures that were announced by India during its budget. It is particularly supportive of maintaining the accommodative fiscal stance and also emphasising expenditures on health and infrastructure. We estimate that the positive impact of the measures for this fiscal year is going to be of the order of point six percentage points on growth, she said, adding that several measures announced in the budget were in line of the IMF's advice. Prominent among them are that there would not be a withdrawal of fiscal stimulus at the general government level and also that state governments would be given the temporary flexibility to go over their budget ceilings. And last, but not least, the fact that some of the other budget items on food subsidies were actually brought into the budget. Overall, the IMF is very supportive of this focus on growth. At the same time, Brooks made a strong case for an additional economic stimulus. We do think that additional fiscal stimulus would be helpful. Focusing that stimulus again on the most vulnerable is something that makes sense to us. We note that some of the income support schemes were not extended beyond November 2020 and such, she said. Taking measures in that area would be particularly helpful as well as making sure that there's priority spending on education, the economist noted. Last, but not least, also ensuring that there is a very concrete medium-term fiscal framework is an area where we can see some room for more work in that area, she said. Now when it comes to monetary policy, we think that given the underlying slack in the economy, maintaining the accommodative monetary policy stance makes sense. This is what we understand is being planned at the moment. This has been our long-standing recommendation that we see scope for additional policy measures to address the weaknesses in the financial sector, in the banking part in the non-bank part of the financial sector. We think that this is going to be particularly important as we come out of the crisis to have that efficient credit intermediation, which is going to allow the economy to grow, the IMF official said. Responding to a question on the stimulus package, Brooks underscored the need to essentially have targeted support for households and for the firms that have been most affected is the most efficient and sensible way to provide that support.

India needs to grow faster to make up for contraction during Covid-19: IMF

A decision by OPEC+ to continue with an output cut would undermine consumption-led recovery and hurt consumers in oil buying nations, Indian oil minister Dharmendra Pradhan told Reuters on Friday.

The world`s third biggest oil importer and consumer, India had been urging major producers to ease output cuts and help global economic recovery from the coronavirus pandemic as well as rein in prices.

"As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery and more so hurt consumers, especially in our price-sensitive market," Pradhan told Reuters.

OPEC and its allies agreed on Thursday to extend most oil output cuts into April, offering small exemptions to Russia and Kazakhstan, after deciding that the demand recovery from the coronavirus pandemic was still fragile despite a recent oil price rally.

A decision by OPEC+ to continue with an output cut would undermine consumption-led recovery and hurt consumers in oil buying nations, Indian oil minister Dharmendra Pradhan told Reuters on Friday.

A decision by OPEC+ to continue with an output cut would undermine consumption-led recovery and hurt consumers in oil buying nations, Indian oil minister Dharmendra Pradhan told Reuters on Friday. The world`s third biggest oil importer and consumer, India had been urging major producers to ease output cuts and help global economic recovery from the coronavirus pandemic as well as rein in prices. "As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery and more so hurt consumers, especially in our price-sensitive market," Pradhan told Reuters. OPEC and its allies agreed on Thursday to extend most oil output cuts into April, offering small exemptions to Russia and Kazakhstan, after deciding that the demand recovery from the coronavirus pandemic was still fragile despite a recent oil price rally.

India says OPEC+ decision to hit consumption-led recovery, hurt customers

The pandemic-induced technical recession in India has ended with growth in both GDP and the gross value added (GVA) in real terms in Q3 FY2021.

The Gross Domestic Product (GDP) grew 0.4 per cent in the October-December 2020 period compared with the same period a year back, data released by the National Statistics Office on Friday showed.

This growth compares with revised contractions of 24.4 per cent in April-June 2020 and 7.3 per cent in July-September. GDP had expanded by 3.3 per cent in October-December 2019.

While India has become one of the few major economies to post growth in the last quarter of 2020, the annual GDP estimate for the fiscal year ending March 31 has been revised to an 8 per cent contraction, deeper than an earlier estimate of (-) 7.7 per cent.

China's economy grew by 6.5 per cent in October-December 2020, faster than the 4.9 per cent growth in July-September 2020.

Commenting on the growth numbers, the finance ministry in a statement said real GDP growth has "returned the economy to the pre-pandemic times of positive growth rates."

"It is also a reflection of a further strengthening of V-shaped recovery that began in Q2 of 2020-21 after a large GDP contraction in Q1 followed one of the most stringent lockdown imposed by government relative to other countries," it said.

Stating that the V-shaped recovery has been driven by rebounds in private consumption and investments, the ministry said the initial policy choice of "lives over livelihoods" succeeded by "lives as well as livelihoods" is now bearing positive results.

Agriculture, a bright spot through the pandemic, grew 3.9 per cent in October-December while manufacturing expanded 1.6 per cent as the economy reopened after a harsh lockdown.

Financial and real estate services grew 6.6 per cent but trade, hotels, transport and communication fell 7.7 per cent. Construction rose 6.2 per cent.

The positive growth ends the recession that the Indian economy had witnessed lately.

Arun Singh, Global Chief Economist, Dun &amp; Bradstreet, said the release of pent-up demand fuelled by the festive period might have added to the marginal positive growth in GDP in Q3 FY21.

"Most surprising is the contribution of government spending to the GDP during the third quarter which is a seven-quarter low, even as the government's stimulus package 3.0 was announced before the festive month," he said, adding that private consumption demand, although improved, remains weak.

However, there are risks to growth that arise from the fact that industrial production is yet to stabilise, core inflation remains stubbornly high, oil prices are rearing its head again and unemployment remains elevated.

Add to this is the risk of spurt in COVID-19 cases in some states and the likely disruptions to businesses and supply chain from the restrictions imposed to curb the possibility of a second wave.

"The measures taken by the government to contain the spread of the COVID-19 pandemic have had an impact on the economic activities as well as on the data collection mechanisms.

"The data challenges in the case of other underlying macro-economic indicators like IIP (industrial production) and CPI (retail inflation), used in the estimation of National Accounts aggregates and specific measures, if any, taken by the government in the following months with a view to addressing the pandemic led economic situation will have implications on the subsequent revision of these estimates," the NSO said.

Estimates are, therefore, likely to undergo sharp revisions for the aforesaid causes in due course, as per the release calendar. Users should take this into consideration when interpreting the figures, it added.

"With a growth re-emerging in both GDP and GVA in Q3 FY2021, the pandemic-induced technical recession in India has ended, in line with our expectations," Icra Principal Economist Aditi Nayar said.

Recouping of GDP to the positive territory is a promising sign as it portends the end of the pandemic-induced recessionary phase seen in the first half of the year, CII Director General Chandrajit Banerjee said.

The growth stimuli available from the Union Budget and the additional measures, including the PLI (Production Linked Incentives), will lead to a sturdy growth path over the recovery horizon, he added.

"The real push will come in the Q4 (January-March) 2021 because lockdowns on many sectors, particularly hospitality and travel eased substantially during this quarter.

"It is hoped that it remains that way, given the uptick in COVID-19 cases in some pockets and in some states. Important to note that the states coming under uptick constitute a large part of industrial activity, and that is important for Q4 and the next financial year," Deloitte India partner Sanjay Kumar said.

(With inputs from agencies)

The pandemic-induced technical recession in India has ended with growth in both GDP and the gross value added (GVA) in real terms in Q3 FY2021. The Gross Domestic Product (GDP) grew 0.

The pandemic-induced technical recession in India has ended with growth in both GDP and the gross value added (GVA) in real terms in Q3 FY2021. The Gross Domestic Product (GDP) grew 0.4 per cent in the October-December 2020 period compared with the same period a year back, data released by the National Statistics Office on Friday showed. This growth compares with revised contractions of 24.4 per cent in April-June 2020 and 7.3 per cent in July-September. GDP had expanded by 3.3 per cent in October-December 2019. While India has become one of the few major economies to post growth in the last quarter of 2020, the annual GDP estimate for the fiscal year ending March 31 has been revised to an 8 per cent contraction, deeper than an earlier estimate of (-) 7.7 per cent. China's economy grew by 6.5 per cent in October-December 2020, faster than the 4.9 per cent growth in July-September 2020. Commenting on the growth numbers, the finance ministry in a statement said real GDP growth has "returned the economy to the pre-pandemic times of positive growth rates." "It is also a reflection of a further strengthening of V-shaped recovery that began in Q2 of 2020-21 after a large GDP contraction in Q1 followed one of the most stringent lockdown imposed by government relative to other countries," it said. Stating that the V-shaped recovery has been driven by rebounds in private consumption and investments, the ministry said the initial policy choice of "lives over livelihoods" succeeded by "lives as well as livelihoods" is now bearing positive results. Agriculture, a bright spot through the pandemic, grew 3.9 per cent in October-December while manufacturing expanded 1.6 per cent as the economy reopened after a harsh lockdown. Financial and real estate services grew 6.6 per cent but trade, hotels, transport and communication fell 7.7 per cent. Construction rose 6.2 per cent. The positive growth ends the recession that the Indian economy had witnessed lately. Arun Singh, Global Chief Economist, Dun & Bradstreet, said the release of pent-up demand fuelled by the festive period might have added to the marginal positive growth in GDP in Q3 FY21. "Most surprising is the contribution of government spending to the GDP during the third quarter which is a seven-quarter low, even as the government's stimulus package 3.0 was announced before the festive month," he said, adding that private consumption demand, although improved, remains weak. However, there are risks to growth that arise from the fact that industrial production is yet to stabilise, core inflation remains stubbornly high, oil prices are rearing its head again and unemployment remains elevated. Add to this is the risk of spurt in COVID-19 cases in some states and the likely disruptions to businesses and supply chain from the restrictions imposed to curb the possibility of a second wave. "The measures taken by the government to contain the spread of the COVID-19 pandemic have had an impact on the economic activities as well as on the data collection mechanisms. "The data challenges in the case of other underlying macro-economic indicators like IIP (industrial production) and CPI (retail inflation), used in the estimation of National Accounts aggregates and specific measures, if any, taken by the government in the following months with a view to addressing the pandemic led economic situation will have implications on the subsequent revision of these estimates," the NSO said. Estimates are, therefore, likely to undergo sharp revisions for the aforesaid causes in due course, as per the release calendar. Users should take this into consideration when interpreting the figures, it added. "With a growth re-emerging in both GDP and GVA in Q3 FY2021, the pandemic-induced technical recession in India has ended, in line with our expectations," Icra Principal Economist Aditi Nayar said. Recouping of GDP to the positive territory is a promising sign as it portends the end of the pandemic-induced recessionary phase seen in the first half of the year, CII Director General Chandrajit Banerjee said. The growth stimuli available from the Union Budget and the additional measures, including the PLI (Production Linked Incentives), will lead to a sturdy growth path over the recovery horizon, he added. "The real push will come in the Q4 (January-March) 2021 because lockdowns on many sectors, particularly hospitality and travel eased substantially during this quarter. "It is hoped that it remains that way, given the uptick in COVID-19 cases in some pockets and in some states. Important to note that the states coming under uptick constitute a large part of industrial activity, and that is important for Q4 and the next financial year," Deloitte India partner Sanjay Kumar said. (With inputs from agencies)

Covid-driven recession over, India economy returns to growth in December quarter

IMF chief has praised India for taking "very decisive" steps to tackle the coronavirus pandemic and the "economic consequences" it brought, hoping the country to do more this year to push forward the economy.&nbsp;

"When I called on everybody to stay tuned for January 26, that applies very much to India. You would see a picture in our update that is less bad. Why? Because the country actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it," IMF Managing Director Kristalina Georgieva was quoted as saying by the news agency PTI.&nbsp;

Watch |&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/world-business-watch-tesla-marks-india-entry-with-new-office-in-bengaluru-356383/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Sharing her thoughts on Thursday on global media roundtable, Georgieva also predicted a comparatively better outlook for India in the upcoming World Economic Update because of the steps taken.&nbsp;

Also read | <a href="https://www.wionews.com/india-news/potential-to-represent-significant-step-forward-for-agricultural-reforms-imf-praises-indias-farm-bill-356857">Potential to represent significant step forward for agricultural reforms: IMF praises India's farm bill</a>

She also praised India for targeted lockdown and said that the mobility indicators in India are nearly in the country what they were pre-Covid-19, highlighting that the country has seen an economic revival "significantly".&nbsp;

"Then India moved to more targeted restrictions and lockdowns. What we see is that that transition, combined with policy support, seems to have worked well. Why? Because if you look at mobility indicators, we are almost where we were before COVID in India, meaning that economic activities have been revitalised quite significantly," the IMF chief said.

She also lauded the government's support on the monetary policy, saying that it was better than the average of emerging markets and urged the administration to do more if possible.&nbsp;

"What the government has done on the monetary policy and the fiscal policy side is commendable. It is actually slightly above the average for emerging markets. Emerging markets on average have provided six per cent of the GDP. In India, this is slightly above that. Good for India is that there is still space to do more….. If you can do more, please do," Georgieva added.&nbsp; 
&nbsp;

IMF chief has praised India for taking "very decisive" steps to tackle the coronavirus pandemic and the "economic consequences" it brought, hoping the country to do more this year to push forward the economy.

IMF chief has praised India for taking "very decisive" steps to tackle the coronavirus pandemic and the "economic consequences" it brought, hoping the country to do more this year to push forward the economy. "When I called on everybody to stay tuned for January 26, that applies very much to India. You would see a picture in our update that is less bad. Why? Because the country actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it," IMF Managing Director Kristalina Georgieva was quoted as saying by the news agency PTI. Watch | Sharing her thoughts on Thursday on global media roundtable, Georgieva also predicted a comparatively better outlook for India in the upcoming World Economic Update because of the steps taken. Also read | Potential to represent significant step forward for agricultural reforms: IMF praises India's farm bill She also praised India for targeted lockdown and said that the mobility indicators in India are nearly in the country what they were pre-Covid-19, highlighting that the country has seen an economic revival "significantly". "Then India moved to more targeted restrictions and lockdowns. What we see is that that transition, combined with policy support, seems to have worked well. Why? Because if you look at mobility indicators, we are almost where we were before COVID in India, meaning that economic activities have been revitalised quite significantly," the IMF chief said. She also lauded the government's support on the monetary policy, saying that it was better than the average of emerging markets and urged the administration to do more if possible. "What the government has done on the monetary policy and the fiscal policy side is commendable. It is actually slightly above the average for emerging markets. Emerging markets on average have provided six per cent of the GDP. In India, this is slightly above that. Good for India is that there is still space to do more….. If you can do more, please do," Georgieva added.

IMF chief praises India for taking 'decisive' steps to tackle Covid-19

We all tend to know what the coming year has in store for us and even rely on astrology and tarot to forecast the year ahead.

However, politics and international relations don't work that way.&nbsp;

Also read | <a href="https://www.wionews.com/world/with-fireworks-australia-new-zealand-welcome-2021-353638">With fireworks, India, other nations welcome 2021 as celebrations turn low-key</a>

<h1>Let's look at what awaits India in the new year vis-a-vis the world.&nbsp;</h1>

<h2>Vaccine manufacturing</h2>

The most important thing this year for India will be vaccine manufacturing and the world will be relying on the country for large-scale production and supply.

The Serum Institute of India is producing Oxford-AstraZeneca vaccine, Hyderabad-based Biological E has struck a deal for the shot being developed by Johnson &amp; Johnson's subsidiary.&nbsp;

Reports say Biological E may also manufacture the vaccine being developed by Houston's Baylor College of Medicine.&nbsp;

Indian Immunologicals Ltd has entered into a partnership with Australia's Griffith University.&nbsp;

Dr Reddy's has a deal to produce 100 million doses of the Sputnik V.&nbsp;

India's vaccine makers are known for their safety measures and effectiveness. But, going forward, India's role will be beyond large-scale vaccine supply and in 2021, the country will also be looking for equitable distribution of vaccines.&nbsp;

To ensure that distribution is not skewed towards wealthy countries, India will be supplying 100 million doses of vaccines to middle-income countries.&nbsp;

It has promised 30 million shots to Bangladesh. Bhutan's Prime Minister Lotay Tshering has said that India's lead to develop vaccines "is a source of hope for all of us".

In 2021, India will be the world's hope for global vaccination.&nbsp;

<h2>Reviving the economy</h2>

This year, another big task for India will be getting its economy back on track.

In 2020, India entered its first recession since Independence.

The country needs to restructure its balance sheets, improve monetary policy transmission.

The IMF predicts that it will take India at least three years to recover from the pandemic blow to get its per capita GDP back to pre-pandemic levels.&nbsp;

As the Indian economy gets back on its feet, it can try to use the opportunity to include more digital technology.&nbsp;

<h2>The China challenge</h2>

China is another big challenge for India in 2021 and this hurdle is multi-fold.

First, India will have to look at ways to restructure the supply China, weed out Chinese products.&nbsp;

Secondly, India will have to get the dragon off its back at Ladakh.

It should work towards defining the Line of Actual Control or find alternatives, maybe military options.&nbsp;

India has a headway here as it controls the heights at the LAC.&nbsp;

The third challenge from China is autocracy. It will be up to India, the world's biggest democracy to stop China from spreading its aggressive and autocratic wings.&nbsp;

<h2>A 5G alliance</h2>

In 2021, a 5G alliance also awaits India, a group that will stand opposed to reliance on Chinese technology.&nbsp;

The grouping is expected to include the world's biggest democracies, India, Australia, South Korea, France, Canada, Germany, Japan, Italy, the US and the UK.&nbsp;

Along with these countries, India will try to create an alternative pool of 5G equipment and technologies so that the world can boycott Chinese technology.&nbsp;

<h2>Regional stability and terrorism</h2>

Finally, India will also continue to work towards regional stability and anti-terrorism in 2021. New Delhi will also have to find a balance between putting its neighbourhood first and at the same time forming strategic alliances.&nbsp;

<h1>Now let's zoom out and see what awaits the world in 2021.&nbsp;</h1>

The vaccines might be here, but most of the world will not get it next year. Rich countries have secured 51 per cent of the supplies. The poor countries have fallen behind.&nbsp;

As per an estimate, the world needs 15 million doses, but COVAX, the global initiative for equitable access to immunisation has agreements in place to secure just around two billion doses.&nbsp;

Low-income countries might have to wait until 2023 or 2024 for vaccination and with the new strains and shortage of vaccine supplies, the world still needs lockdowns.&nbsp;

We all tend to know what the coming year has in store for us and even rely on astrology and tarot to forecast the year ahead. However, politics and international relations don't work that way.

We all tend to know what the coming year has in store for us and even rely on astrology and tarot to forecast the year ahead. However, politics and international relations don't work that way. Also read | With fireworks, India, other nations welcome 2021 as celebrations turn low-key Let's look at what awaits India in the new year vis-a-vis the world. Vaccine manufacturing The most important thing this year for India will be vaccine manufacturing and the world will be relying on the country for large-scale production and supply. The Serum Institute of India is producing Oxford-AstraZeneca vaccine, Hyderabad-based Biological E has struck a deal for the shot being developed by Johnson & Johnson's subsidiary. Reports say Biological E may also manufacture the vaccine being developed by Houston's Baylor College of Medicine. Indian Immunologicals Ltd has entered into a partnership with Australia's Griffith University. Dr Reddy's has a deal to produce 100 million doses of the Sputnik V. India's vaccine makers are known for their safety measures and effectiveness. But, going forward, India's role will be beyond large-scale vaccine supply and in 2021, the country will also be looking for equitable distribution of vaccines. To ensure that distribution is not skewed towards wealthy countries, India will be supplying 100 million doses of vaccines to middle-income countries. It has promised 30 million shots to Bangladesh. Bhutan's Prime Minister Lotay Tshering has said that India's lead to develop vaccines "is a source of hope for all of us". In 2021, India will be the world's hope for global vaccination. Reviving the economy This year, another big task for India will be getting its economy back on track. In 2020, India entered its first recession since Independence. The country needs to restructure its balance sheets, improve monetary policy transmission. The IMF predicts that it will take India at least three years to recover from the pandemic blow to get its per capita GDP back to pre-pandemic levels. As the Indian economy gets back on its feet, it can try to use the opportunity to include more digital technology. The China challenge China is another big challenge for India in 2021 and this hurdle is multi-fold. First, India will have to look at ways to restructure the supply China, weed out Chinese products. Secondly, India will have to get the dragon off its back at Ladakh. It should work towards defining the Line of Actual Control or find alternatives, maybe military options. India has a headway here as it controls the heights at the LAC. The third challenge from China is autocracy. It will be up to India, the world's biggest democracy to stop China from spreading its aggressive and autocratic wings. A 5G alliance In 2021, a 5G alliance also awaits India, a group that will stand opposed to reliance on Chinese technology. The grouping is expected to include the world's biggest democracies, India, Australia, South Korea, France, Canada, Germany, Japan, Italy, the US and the UK. Along with these countries, India will try to create an alternative pool of 5G equipment and technologies so that the world can boycott Chinese technology. Regional stability and terrorism Finally, India will also continue to work towards regional stability and anti-terrorism in 2021. New Delhi will also have to find a balance between putting its neighbourhood first and at the same time forming strategic alliances. Now let's zoom out and see what awaits the world in 2021. The vaccines might be here, but most of the world will not get it next year. Rich countries have secured 51 per cent of the supplies. The poor countries have fallen behind. As per an estimate, the world needs 15 million doses, but COVAX, the global initiative for equitable access to immunisation has agreements in place to secure just around two billion doses. Low-income countries might have to wait until 2023 or 2024 for vaccination and with the new strains and shortage of vaccine supplies, the world still needs lockdowns.

What India has in store for world in 2021

India’s economy shrank 7.5 per cent in the fiscal second quarter, after seeing a record contraction of 23.9 per cent in Q1.

WION Dispatch: India’s economy shrinks 7.5% in Q2, falls into recession

Negative real rates in India and recovering growth alongside high inflation suggest its central bank has little room for more monetary stimulus, but policy is likely to stay accommodative, economists and analysts said.

Industrial production in September grew for the first time in six months while green shoots are also visible in rising goods and services tax collections, higher energy consumption, and an uptick in the purchasing managers` index among other gauges.

With inflation staying above 7% in October for a second straight month, well above the RBI`s medium term target of 4%, views that India is near the end of the current rate cutting cycle have become more pronounced.

"The inflation rate has been consistently ahead of not only your target rate but the upper end of your target range as well. Ideally, you should be looking at rate hikes right now," said Sameer Narang, chief economist at Bank of Baroda.

Though the central bank is unable to hike rates due to the impact of the COVID-19 pandemic on economic activity, it would still be mindful of the long-term impact of negative real interest rates on the economy, economists believe.

High inflation is a risk the RBI cannot afford to ignore, Nomura economists wrote in a note.

JOKER IN THE PACK

The RBI said on Wednesday that prospects for economic recovery have brightened, a comment interpreted by some analysts that the bank may not need to do much more to boost growth.

If the upturn is sustained over the next few months, the RBI said it expects the economy to break out of the contraction seen in the first two quarters and return to positive growth in the December quarter.

Rating agency Moody`s on Thursday revised its 2020/21 growth forecast to a 8.9% contraction from its earlier forecast of 9.6%, citing the steady decline in new and active COVID-19 cases since September.

But COVID-19 is widely seen as the joker in the pack by most analysts.

They said the central bank would help banks and corporates through lower borrowing costs unless a second wave of infections forces it to provide more direct support through rate cuts.

India`s daily coronavirus infections are less than half their peak hit in September, but the economy is still recovering from sweeping lockdowns to check the pandemic`s spread.

Since March, the RBI has slashed the repo rate by 115 basis points to cushion the shock from the crisis.

"Given the fragile state of the economy, the RBI is likely to continue with its accommodative stance for a prolonged period," Sujan Hajra, chief economist at Anand Rathi Securities said.

Negative real rates in India and recovering growth alongside high inflation suggest its central bank has little room for more monetary stimulus, but policy is likely to stay accommodative, economists and analysts said.

Negative real rates in India and recovering growth alongside high inflation suggest its central bank has little room for more monetary stimulus, but policy is likely to stay accommodative, economists and analysts said. Industrial production in September grew for the first time in six months while green shoots are also visible in rising goods and services tax collections, higher energy consumption, and an uptick in the purchasing managers` index among other gauges. With inflation staying above 7% in October for a second straight month, well above the RBI`s medium term target of 4%, views that India is near the end of the current rate cutting cycle have become more pronounced. "The inflation rate has been consistently ahead of not only your target rate but the upper end of your target range as well. Ideally, you should be looking at rate hikes right now," said Sameer Narang, chief economist at Bank of Baroda. Though the central bank is unable to hike rates due to the impact of the COVID-19 pandemic on economic activity, it would still be mindful of the long-term impact of negative real interest rates on the economy, economists believe. High inflation is a risk the RBI cannot afford to ignore, Nomura economists wrote in a note. JOKER IN THE PACK The RBI said on Wednesday that prospects for economic recovery have brightened, a comment interpreted by some analysts that the bank may not need to do much more to boost growth. If the upturn is sustained over the next few months, the RBI said it expects the economy to break out of the contraction seen in the first two quarters and return to positive growth in the December quarter. Rating agency Moody`s on Thursday revised its 2020/21 growth forecast to a 8.9% contraction from its earlier forecast of 9.6%, citing the steady decline in new and active COVID-19 cases since September. But COVID-19 is widely seen as the joker in the pack by most analysts. They said the central bank would help banks and corporates through lower borrowing costs unless a second wave of infections forces it to provide more direct support through rate cuts. India`s daily coronavirus infections are less than half their peak hit in September, but the economy is still recovering from sweeping lockdowns to check the pandemic`s spread. Since March, the RBI has slashed the repo rate by 115 basis points to cushion the shock from the crisis. "Given the fragile state of the economy, the RBI is likely to continue with its accommodative stance for a prolonged period," Sujan Hajra, chief economist at Anand Rathi Securities said.

India rate cuts bets fall as recovery gains hold, inflation stays high

Finance Minister Nirmala Sitharaman is addressed a press conference during which the FM announced more stimulus to boost the Coronavirus-hit economy. FM announces Atmanirbhar Bharat Rozgar Yojana for formal sector.

WION Dispatch: Finance Minister announces more stimulus to boost 'COVID-hit' economy

India is planning to announce a fresh round of stimulus totalling about $20 billion this week to help pull the economy out of its historic contraction, government officials said on Wednesday.

India planning around $20 billion of new stimulus

Activity in India’s dominant services industry, expanded for the first time in eight months in October as demand surged.

India's services activity grows in October after months of contraction

India's factory activity expanded at its fastest pace in over a decade in October as demand and output continued to recover strongly from coronavirus-related disruptions

India's October factory growth at decade high

Goods and Services Tax (GST) collections for October grossed Rs 1.05 lakh crore, the highest so far in the financial year and 10% higher than collections in the same month last year, which stood at Rs 95,379 crore.

GST collection crosses Rs 1 lakh crore mark for first time since February

IMF has said that India's gross domestic product (GDP) is expected to contract by 10.3% due to the impact of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic.

IMF's biannual world economic outlook: India's GDP to contract

The World Bank has said India’s GDP is expected to further contract by 9.6% this fiscal as a reflection of the economic slump the country has suffered due to the national lockdown induced by the coronavirus pandemic.

World Bank: India's GDP to contract in FY21

As per the data released by the National Statistical Office (NSO), India’s Gross Domestic Product (GDP) for the April-June quarter (Q1) slipped by a sharp 23.9 per cent.

First GDP numbers during COVID times

India had started to see green shoots, before the coronavirus pandemic hit in February, Union Minister of Finance Nirmala Sitharaman said even as India's economy grew at its slowest pace in at least eight years in the January-March quarter.

Asia's third-largest economy grew at a faster-than-expected 3.1 per cent in the last quarter. The Gross Domestic Product (GDP) growth stood at 5.7 per cent in the corresponding quarter of 2018-19, according to the data released by the National Statistical Office (NSO) on Friday.

To this end, Sitharaman, in an exclusive conversation with WION, said, "This is a quarter where we thought we had started seeing green shoots. That is one reason the estimates were made the way they were made. The contraction happened in April because by this time the coronavirus pandemic had hit us really fully and badly. So the 3.1 per cent -- given the fact that by February we had started having some kind of impact of the pandemic -- therefore gives me the feeling that revival was happening. But unfortunately, the God's hand... [hit us]."

India's economic growth slowed to an 11-year low of 4.2 per cent for the full fiscal 2019-20 amid a drop in consumption and investment.

During 2019-20, the Indian economy grew at 4.2 per cent as against 6.1 per cent in 2018-19. The economic growth was the lowest since 2008-09 when the economy had expanded at 3.1 per cent.

India has so far reported 1,65,000 coronavirus cases, with 4,706 deaths. The government imposed a lockdown to curb the spread of coronavirus from March 25, 2020.

Economists expect the fiscal year that began in April will see the worst economic contraction in four decades, and say the economy could contract up to 5 per cent.

But Sitharaman would not like to make any estimates.

"I have said [before] I shall not make any estimates. I am watching and hearing the agencies are telling us to what extent the contraction is going to hit India. So it is my duty to be prepared for the situation. And be ready to support. With the full support of the prime minister, we want to ensure that everybody gets the full support," she said.

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India's Finance Minister <a href="https://twitter.com/nsitharaman?ref_src=twsrc%5Etfw">@nsitharaman</a> reacts to India's Q4 GDP data. 
Tells <a href="https://twitter.com/palkisu?ref_src=twsrc%5Etfw">@palkisu</a> that India had started witnessing green shoots before the pandemic hit. 
 
Watch the full interview at 9 PM IST only on <a href="https://twitter.com/WIONews?ref_src=twsrc%5Etfw">@WIONews</a> <a href="https://twitter.com/hashtag/Gravitas?src=hash&amp;ref_src=twsrc%5Etfw">#Gravitas</a> <a href="https://t.co/1HBTM4Fwue">pic.twitter.com/1HBTM4Fwue</a>
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A Reuters poll of economists had forecast a growth rate of 2.1 per cent for the March quarter, compared with a downwardly revised 4.1 per cent rise in the October-December period in 2019.

Sitharaman also spoke about the gradual withdrawal of the coronavirus lockdown, and the importance of striking a balance of economic growth with the health and lives of the people.

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Watch her full interview with <a href="https://twitter.com/palkisu?ref_src=twsrc%5Etfw">@palkisu</a> at 9 PM IST only on <a href="https://twitter.com/WIONews?ref_src=twsrc%5Etfw">@WIONews</a> <a href="https://twitter.com/hashtag/Gravitas?src=hash&amp;ref_src=twsrc%5Etfw">#Gravitas</a> <a href="https://t.co/2FT3yPmFud">pic.twitter.com/2FT3yPmFud</a>
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Also, on Friday, the Ministry of Statistics and Programme Implementation cut its growth estimate for the fiscal year that ended on March 31 to 4.2 per cent -- the lowest in at least eight years under the current series -- from a previously projected 5 per cent.

The government has maintained the lockdown ordered in late March though many restrictions were eased for manufacturing, transport and other services from May 18.

India's infrastructure output contracted 38.1 per cent in April from a year earlier, data released on Friday showed.

Infrastructure output, which comprises eight sectors including coal, crude oil and electricity, accounts for nearly 40 per cent of the country's industrial output.

The lockdown's full impact on manufacturing and services will become more apparent in the June quarter. Goldman Sachs has predicted a 45 per cent contraction from a year ago.

Watch India's FM Nirmala Sitharaman in conversation with Palki Sharma Upadhyay on WION --&nbsp;Friday at 9 pm IST.

India had started to see green shoots, before the coronavirus pandemic hit in February, Union Minister of Finance Nirmala Sitharaman said even as India's economy grew at its slowest pace in at least eight years in the January-March quarter.

India had started to see green shoots, before the coronavirus pandemic hit in February, Union Minister of Finance Nirmala Sitharaman said even as India's economy grew at its slowest pace in at least eight years in the January-March quarter. Asia's third-largest economy grew at a faster-than-expected 3.1 per cent in the last quarter. The Gross Domestic Product (GDP) growth stood at 5.7 per cent in the corresponding quarter of 2018-19, according to the data released by the National Statistical Office (NSO) on Friday. To this end, Sitharaman, in an exclusive conversation with WION, said, "This is a quarter where we thought we had started seeing green shoots. That is one reason the estimates were made the way they were made. The contraction happened in April because by this time the coronavirus pandemic had hit us really fully and badly. So the 3.1 per cent -- given the fact that by February we had started having some kind of impact of the pandemic -- therefore gives me the feeling that revival was happening. But unfortunately, the God's hand... [hit us]." India's economic growth slowed to an 11-year low of 4.2 per cent for the full fiscal 2019-20 amid a drop in consumption and investment. During 2019-20, the Indian economy grew at 4.2 per cent as against 6.1 per cent in 2018-19. The economic growth was the lowest since 2008-09 when the economy had expanded at 3.1 per cent. India has so far reported 1,65,000 coronavirus cases, with 4,706 deaths. The government imposed a lockdown to curb the spread of coronavirus from March 25, 2020. Economists expect the fiscal year that began in April will see the worst economic contraction in four decades, and say the economy could contract up to 5 per cent. But Sitharaman would not like to make any estimates. "I have said [before] I shall not make any estimates. I am watching and hearing the agencies are telling us to what extent the contraction is going to hit India. So it is my duty to be prepared for the situation. And be ready to support. With the full support of the prime minister, we want to ensure that everybody gets the full support," she said. #StraightTalkWithNirmala India's Finance Minister @nsitharaman reacts to India's Q4 GDP data. Tells @palkisu that India had started witnessing green shoots before the pandemic hit. Watch the full interview at 9 PM IST only on @WIONews #Gravitas pic.twitter.com/1HBTM4Fwue — WION (@WIONews) May 29, 2020 × A Reuters poll of economists had forecast a growth rate of 2.1 per cent for the March quarter, compared with a downwardly revised 4.1 per cent rise in the October-December period in 2019. Sitharaman also spoke about the gradual withdrawal of the coronavirus lockdown, and the importance of striking a balance of economic growth with the health and lives of the people. #StraightTalkWithNirmala India's Finance Minister @nsitharaman speaks on striking a balance between containing #COVID19 and getting the economy going. Watch her full interview with @palkisu at 9 PM IST only on @WIONews #Gravitas pic.twitter.com/2FT3yPmFud — WION (@WIONews) May 29, 2020 × Also, on Friday, the Ministry of Statistics and Programme Implementation cut its growth estimate for the fiscal year that ended on March 31 to 4.2 per cent -- the lowest in at least eight years under the current series -- from a previously projected 5 per cent. The government has maintained the lockdown ordered in late March though many restrictions were eased for manufacturing, transport and other services from May 18. India's infrastructure output contracted 38.1 per cent in April from a year earlier, data released on Friday showed. Infrastructure output, which comprises eight sectors including coal, crude oil and electricity, accounts for nearly 40 per cent of the country's industrial output. The lockdown's full impact on manufacturing and services will become more apparent in the June quarter. Goldman Sachs has predicted a 45 per cent contraction from a year ago. Watch India's FM Nirmala Sitharaman in conversation with Palki Sharma Upadhyay on WION -- Friday at 9 pm IST.

India had started to see green shoots before coronavirus hit: FM Sitharaman to WION

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill. A report by the United Nations Department of Economic and Social Affairs has projected that the world economy is set to lose nearly $8.5 trillion over the next 2 years.

UN Predicts slowing down of India’s growth

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India planning around $20 billion of new stimulus

India planning around $20 billion of new stimulus

India's services activity grows in October after months of contraction

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GST collection crosses Rs 1 lakh crore mark for first time since February