India's Q4 GDP growth at 1.6 per cent in FY21

The Indian economy rose by 1.6% in the January to March quarter (Q4 FY21) from the previous three months but contracted by 7.3 per cent for the entire fiscal year, which was the worst in more than 40 years, data released by the government showed on Monday. The Indian economy continued its expansion in Q4 od FY21 in line with the forecasts by experts and is the second consecutive quarter when it has grown after negative growth in the two previous ones. India's economy, which was hit by the coronavirus pandemic and the nationwide lockdown imposed to curb the spread of infections last year, contracted during the first half of FY21, before returning to positive territory in October-December quarter with a growth of 0.4 per cent. The economy shrunk by 23.9 per cent in April-June, which improved to 7.5 per cent contraction in July-September.

The Central Statistics Office (CSO), which releases the data, projected 8 per cent GDP contraction in FY21, implying a contraction of 1.1 per cent in March quarter. Meanwhile, the Reserve Bank of India (RBI) projected a 7.5 per cent contraction for FY21. RBI, which has kept its monetary policy loose while boosting liquidity to the economy, said on Thursday that growth prospects will depend on how fast India can arrest infections. Union finance minister Nirmala Sitharaman, who has limited room amid a fall in tax collections and rising public debt, said on Friday that no decision has been taken for another stimulus package.