Indian economy may grow at over 11 percent in 2022 FY: Tata Sons Chairman

The Indian economy could grow at over 11 percent in 2022 financial year, as it has rebounded spectacularly after the initial loss of production due to COVID-19 this year, said N Chandrasekaran, Chairman, Tata Sons.

"While this rebound looks spectacular, this is coming on the back of the loss of real output. This means we should not only recover but also accelerate," Chandrasekaran said about pushing economic activity in the country. He was addressing FICCI's annual convention on December 12.

India's GDP had contracted by 7.5 percent in the second quarter, a significant improvement from the unprecedented 23.9 percent plummet in the first quarter. The country had gone into a nationwide lockdown by the end of March, the some of the easing began only in May.

More recent economic numbers show further improvement. India's index of industrial output in October was 3.6 percent, against 0.5 percent in September, as per the Index of Industrial Production (IIP) data released by the government on December 11. The IIP growth was an eight-month high.

"In the near term, there are reasons for optimism. Several indicators have rebounded faster than expected. GDP growth may accelerate by over 11 percent in 2022 after a significant contraction," Chandrasekaran said.