India's economy, which contracted for the first two quarters of the current financial year, is expected to register growth in the third and the fourth quarters, PHD Chamber of Commerce and Industry (PHDCCI) said. The chamber said that the various reform measures that have been taken in the last few months will help in generating demand and investment.

India’s economy contracted 23.9 per cent in the first quarter 2020-21 and 7.5 in the second quarter.

“On the back of various reforms undertaken by the government in last 10 months along with a demand boosting and investment inducing Budget, the expectations of a positive GDP growth in Q3 and in Q4 FY 2020-21 are becoming strong,” the industry body said.

While green shoots of economic recovery are visible, the country’s GDP for the full financial year is projected to contract by 7.7 per cent. In 2019-20, India posted a growth of 4 per cent. 

Meanwhile, the International Monetary Fund in its World Economic Outlook released recently pegged India’s growth rate at 11.5 per cent in 2021 and 6.8 per cent in 2022. This would make India the fastest growing economy in the world in the aftermath of the Covid-19 pandemic. Analysts said that the early implementation of the Covid 19 vaccine drive has been one of the biggest drivers of sentiment.