Economy reviving, but GDP will be negative this financial year: Nirmala Sitharaman

Speaking at the 4th Annual India Energy Forum by CERA Week, Finance Minister Nirmala Sitharaman said that recent data indicates revival in the economy, with PMI number being the highest since 2012.

"If that sustainable revival is going to happen between quarter three and quarter four, we expect that the overall GDP growth is going to be in the negative or near zero this time," she said.

Whereas, the RBI has projected the Indian economy will be contracting by 9.5 per cent in the current fiscal year, while IMF and World Bank estimate the contraction at 10.3 per cent and 9.6 per cent respectively.

The Indian economy had been slowing even before the pandemic. India recorded a GDP growth of 4.2 per cent in FY19-20.