Macros in FY21: A year of unprecedented contraction and worst annual data

FY21 - the year of the pandemic. It truly has been a tough year for economies world over and India is no different.

Decades from now when we look back at FY21, the first thing we will say about our macro numbers – gross domestic product (GDP) in particular-is that they were scary – the economy contracted 25 percent in the first quarter of the fiscal.

It is the year of the worst contraction and the worst annual data since the GDP series started to be maintained and the positive will be that next year, because of minus 8 percent in FY21, you are going to get plus 12 percent, but what thereafter. Do we go back to 6-7 percent or will we not get there – and that will be the big worry hereafter.