Govt 'cautiously optimistic' as GDP contraction not so sharp in Q2: CEA

Warns about the possibility of another, more devastating Covid wave, strikes an optimistic chord on declining infections

It is difficult to say whether gross domestic product (GDP) growth would enter positive territory in the upcoming quarters, given coronavirus-related uncertainty, said Chief Economic Advisor (CEA) K V Subramanian on Friday.
 
He said that government was “cautiously optimistic” as most indicators across sectors have shown improvement in the second quarter (Q2) of fiscal year 2020-21 (FY21) compared to Q1.
 
“The uncertainty in economic outlook is due to the Covid-19 pandemic. The GDP estimates are more encouraging than what was anticipated by most commentators. (However) I would urge caution, especially given the winter months,” he said in a