India is going to witness a double-digit growth at 10 per cent in 2021-2022 after suffering a rough patch in FY20 due to the COVID-19 crash, according to a report by Deloitte.
The economic contraction reported in the second quarter of 2020-2021 stood at 7.5 per cent. A big improvement from the first quarter of 20202-20201 where the economy touched the historic mark of (-) 23.9 per cent.
"Economic activity is showing signs of traction. The PMI Manufacturing Index is at its highest since 2008," said the report titled 'Voice of Asia' prepared by Deloitte.
It further said that key factors like strong automobile sector performance driven by car sales, rising production of finished steel and diesel consumption, and higher goods and services tax revenue collections indicate that the economy has bounced back strongly since the unlock of the country, backed by pent-up and festive season demand.
However, if coronavirus cases continue to rise, sustaining this rebound in the economy could be a challenge next year, the report added.
"We expect India's GDP (gross domestic product) to rebound to double digits in FY2022 after contracting in FY2021."
The government's effective policy measures together with prudent business strategies should help the economy grow strongly from the next financial year, it added.
