indias tally of infections has crossed 927 million to stand as the worlds second highest after the united states with more than 135000 deaths in the south asian nationnew delhi indias economy is likely to have shown signs of a pickup in the quarter to september after a record contraction the previous quarter and is expected to recover early next year on hopes of better consumer demand fed by progress on coronavirus vaccines economists in a reuters poll forecast gross domestic product in asias third largest economy to shrink 88 in the september quarter after a contraction of 239 in the previous quarter amounting to a technical recession advt they also predict a contraction of 3 and growth of 05 in the december and march quarters respectively with the economy shrinking 87 over the whole financial year for its worst performance in at least four decades economists have marginally raised forecasts this month after a pickup in consumer demand for autos nondurables and rail freight during the festival season as prospects grow for covid19 vaccines to be launched early next year effective widespread distribution of vaccine could help speed economic recovery next year said shilan shah an india economist at capital economics in singapore in particular monthly data on capital goods production suggests that investment has bounced back more sharply than we had thought likely he said in a note this week despite improvement in the growth outlook however a recent surge in infections presents downside risks for the economy said shaktikanta das the governor of the reserve bank of india we need to be watchful about the sustainability of demand after the festivals and a possible reassessment of market expectations surrounding the vaccine he said on thursday indias tally of infections has crossed 927 million to stand as the worlds second highest after the united states with more than 135000 deaths in the south asian nation advt as some states reimposed curbs this week to fight a second wave of infections businesses feared the restrictions could slow the pace of recovery in the next two or three months as well as heightening the risk of inflation prime minister narendra modi whose party won elections this month in the eastern state of bihar expects the recent easing of farm and labour laws along with tax incentives to bolster manufacturing and lure more foreign investment but critics say the economy which must grow at more than 8 a year to create jobs for millions of young people entering the workforce faces a prolonged slowdown thanks to a delay in resolving a banking crisis and inadequate stimulus measures even widespread vaccination would not restore india to economic health as tepid fiscal support and a beleaguered banking sector will weigh on economic growth long after the virus is brought under control said shah reuters published on nov 27 2020 at 0847 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all