India’s growth this year will be negative or near zero, says finance minister Nirmala Sitharaman

Speaking at the India Energy Forum of CERAWeek, she said there was a “very firm lockdown” imposed beginning March 25 as the government put lives before livelihood.

Finance Minister Nirmala Sitharaman on Tuesday said there were visible signs of revival in the economy but the GDP growth may be in negative zone or near zero in the current fiscal.

The focus of the government is on public spending to boost economic activity, Sitharaman said (ANI)

This is primarily because of a huge 23.9% contraction in the economy in the first quarter of current fiscal (April-June), she added.

Speaking at the India Energy Forum of CERAWeek, she said there was a “very firm lockdown” imposed beginning March 25 as the government put lives before livelihood. The lockdown also gave time to do preparatory work to deal with the pandemic.

But with unlock, macroeconomic indicators have shows signs of revival, she said.

Festive season will further spur the economy, rekindling hopes of positive growth in third and fourth quarters.

Overall, the GDP growth current fiscal (April 2020 to March 2021) will be in negative zone or near zero, she said, adding the growth will revive from the next fiscal.

The focus for the government is on public spending to boost economic activity, Sitharaman added.