New Delhi February 27 dmanewsdesk: India Inc on Friday said the recouping of the country’s economy to a positive trajectory in the third quarter is a promising sign as it portends the end of the pandemic-induced recessionary phase seen in the first-half of the fiscal year.
Industry bodies expressed confidence that the GDP will improve further in the coming months on the back of positive growth stimuli emanating from the Union Budget and initiatives like the Production Linked Incentive scheme unveiled by the government.
After contracting for two quarters in a row, the Indian economy grew by 0.4 per cent in the October-December quarter amid coronavirus pandemic, official data showed on Friday.
The gross domestic product (GDP) had expanded by 3.3 per cent in the corresponding period of 2019-20, according to the data released by the National Statistical Office (NSO).
Chandrajit Banerjee, Director General, CII, said that “recouping of GDP to the positive territory by posting a growth of 0.4 per cent in the third quarter is a promising sign as it portends the end of the pandemic-induced recessionary phase seen in the first-half of the year”.
He observed that one of highlights of the data is the positive momentum seen in investment demand as it grew by 2.6 per cent in the third quarter after being in doldrums for several quarters now.
“This bears testimony to the unrelenting efforts of the government
to go all-out to revive investments under the ambit of the various measures which formed a part of the Aatmanirbhar Bharat package,” Banerjee said.
“Going forward, we are confident that the growth stimuli available from the Union Budget and the additional measures including the PLI will lead to a sturdy growth path over the recovery horizon,” he added.