“The 4QFY20 growth print could also face external demand headwinds and domestic supply disruptions owing to COVID-19, even as select domestic activity indicators have started showing nascent improvement. That said, we remain wary of the any secular recovery,” Arora said.

“Increasing policy traction on sector-specific policies, lagged transmission of monetary easing and some improvement in financial conditions would imply possible bottoming of growth from here on and mild improvement as we move to the next year. But despite bottoming, domestic structural overhang and global concerns will be constraining significant pick-up in growth.”

                                             Mr Sreejith Balasubramanian

Sreejith Balasubramanian, Economist-Fund Manage-ment, IDFC AMC, said: “Inventory restocking and base effects could make some of the numbers appear better, but we believe a meaningful recovery could be further away as both demand and credit supply continue to remain weak.” In February, official data showed that slowdown continued to hamper India’s economic activity as 2019-20 third quarter GDP growth rate was recorded at 4.7 per cent from the revised estimate of 5.1 per cent reported for the previous quarter. India’s GDP growth during 2019-20 has been estimated at 5 per cent as against 6.1 per cent in 2018-19.