Indian economy to escape recession early next year

27 November, 2020 12:00 AM printer

BENGALURU: India’s economy is expected to recover early next year from recession, but at a modest pace, according to a majority of economists in a Reuters poll who said their upgraded growth predictions were based on the progress of COVID-19 vaccines.

The recent vaccine news has boosted Indian stocks to repeated record highs and fueled hopes of a pick-up in economic activity. That, coupled with festive-led demand, has lifted optimism amongst economists over the past month, report agencies.

Nearly two-thirds of respondents, 26 of 40, to an additional question said their growth views - which have been raised from a month ago - were based on that vaccine progress.

“We expect growth recovery to strengthen...helped by continued normalisation in economic activity as incoming COVID-19 data remain benign and do not require large-scale shut-downs,” said Upasana Chachra, chief India economist at Morgan Stanley.