New Delhi: Sound a positive note, the Economic Survey has said the Indian economy is set to grow by 11 per cent in the financial year 2021-22.

The Survye tabled in Parliament by Finance Minister Nirmala Sitharaman today the economy is expected to contract by 7.7 per cent by the end of the current financial 2020-21. 

The contraction in FY21 is mainly due to coronavirus (Covid-19) pandemic and the visible damage caused by the subsequent countrywide lockdown to contain it. The survey unveiled two days before the Union Budget is broadly in line with forecasts by the Reserve Bank of India (RBI) which has said it expected the country's GDP to contract by 7.5 per cent in the year ending March 31.

The International Monetary Fund (IMF) recently pegged the contraction in India's economy at 8 per cent in 2020-21.

Giving a positive outlook on India, the IMF, Indian economy to grow by 11.5 per cent in the 2021-22; it would decline to 6.8 per cent in 2022-23.

IMF has predicted that India will regain the tag of the fastest-growing large economy in the world in both years.

In the quarter ended June 2020, the GDP contracted by 23.9 per cent followed by a milder contraction of 7.5 per cent in the quarter ended September 2020.

"India was the only country to announce a slew of structural reforms to expand supply in the medium to long term and avoid long-term damage to productive capacities," said the survey.