Indian economy will continue to have V-shaped recovery: Official

The 7.2 per cent expansion in the economy during October-December quarter has put the country in one of the highest growth bracket in the world and recovery will continue to be sharp going ahead, Economic Affairs Secretary Subhash Chandra Garg said.

The third quarter growth of 7.2 per cent was highest in five quarters. The previous high was recorded at 7.5 per cent in the July-September quarter of 2016-17.

In the first quarter of the current fiscal, the GDP grew at 5.7 per cent, while the second quarter growth stood at 6.5 per cent.

“We have said this earlier that the first quarter (of FY18) was where we bottomed out, and we would see a very strong V-shaped recovery. The growth in the second and third quarter brings evidence to that,” Garg told reporters on the sidelines of an event.

“The third quarter grew at 7.2 per cent and it puts us in the highest growth bracket in the world. I see no reason why that V-shaped recovery should not continue henceforth. I can’t talk about double digit growth at this stage, but certainly there will be very strong growth,” he said.

As per the second advanced estimates of the Central Statistics Office (CSO), the economy is expected to grow at 6.6 per cent in the current fiscal ending March 31, compared to 7.1 per cent in 2016-17.

(Agencies)