India's current macroeconomic situation is "very uncertain" and the country's GDP could contract closer to 10% in the current fiscal, former chief statistician Pronab Sen said on Sunday.

In an interview with PTI, Sen said that although the overall macro-management of the economy by the Modi government has not been very good, but this particular slowdown is really beyond its control. "At the moment India's current macroeconomic situation is very uncertain. I would say we should be very very cautious. I think there is too much optimism going around. "... the actual economic growth of India could be closer to -10% in 2020-21," he said.

Sen added quarterly GDP numbers are still derived from some corporate accounts and corporates have not fared as badly as the non-corporate sector. "We know that MSMEs have been hit much harder than the corporations. So, the headline number coming out in the national accounts is an overly optimistic picture of the economy," the eminent economist said. Sen also stressed on bringing back the confidence of the investors.

India's economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped the GDP clock a lower contraction of 7.5 percent and held out hopes for further improvement on better consumer demand. The Gross Domestic Product (GDP) had shrunk by a massive 23.9 percent in the first quarter of the current fiscal as the COVID-19 lockdown hit economic activity.

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