The Finance Ministry expects to outperform GDP in the third quarter (October-December 2020) of the current financial year. The Ministry believes that the performance of various types of economic activities in October-November has also been very good.
Rural demand is expected to continue further. However, the Finance Ministry in its report has also asked to be cautious about the second wave of the Corona epidemic. The report of the Department of Economic Affairs (DEA) of the Ministry of Finance said that the 23.9 percent decline in GDP for the first quarter of the current financial year was due to a strict lockdown.
As the lockdown eased, the economy saw a recovery of V-shape and the GDP decline rate to 7.5 percent in the second quarter. 23% of second-quarter GDP compared to the first quarter was increased. According to the ministry, this proves that the foundation of the Indian economy is still strong and it is returning to its pre-lockdown position. The Finance Ministry is expecting better performance in the third quarter due to several reasons.