A small positive economic growth in 2020-21 may not be ruled out as sectors such as agriculture and essential goods and services were fully operational in the first quarter despite the coronavirus-induced lockdown, according to a paper co-authored by former RBI governor C. Rangarajan.

Rangarajan and India EY India chief policy advisor D. K. Srivastava in a paper titled “India’s Growth Prospects and Policy Options: Emerging from the Pandemic’s Shadow” stated that the story of the Indian economy as it unfolds under the impact of Covid-19 is disquieting.

The paper noted that although many national and international agencies have projected a sharp contraction in the GDP in 2020-21, ranging from the World Bank’s projection of 3.2 per cent to SBI’s 6.8 per cent, there are reasons to believe that the outcome may be better than these strong contractionary prospects.

“We may note that some key sectors such as agriculture and related sectors, public administration, defence services and other services may perform normally or better than normal given the demand for health services,” the paper said.