Corporate houses have to be cautiously optimistic about growth projections of the economy for 2021 by different agencies that have already seen a round of downward revision in June.

“It is important for business leaders to remain a bit more cautious in the current scenario rather than going overboard with optimism as some numbers in the first instance might look like,” said Siddhartha Sanyal, Bandhan Bank chief economist, at a webinar organised by CII on the occasion of Indian Paints Association’s AGM.

Sanyal said any growth in 2021 has to be seen in the context of a contraction of the economy in 2020.

While there are signs of recovery in certain sectors, the revival of the economy will largely depend on how soon normalcy can return emerging from the Covid-19 pandemic.

Sanyal feels at present a contraction of 4.5 per cent in the current year looks more certain rather than a 6 per cent growth next year.