Sonal Varma, Chief Economist-India & Asia Ex-Japan at Nomura India, Indranil Sen Gupta, India Economist at BofA Securities and R Sivakumar, Head-Fixed Income at Axis Mutual Fund discussed with CNBC-TV18 the recovery in key economic indicators.

Nomura expects Q2 GDP to contract 10 percent versus 24 percent contraction seen in Q1, said Varma.

According to Sen Gupta, the COVID effect initially was a supply shock while now it's a demand shock. On the GDP front, he expects a 7.5 percent contraction this year and has a 11 percent GDP contraction estimate for Q2.

Speaking about monetary policy, Sivakumar said weak growth and higher inflation will pose a challenge for the RBI. He expects RBI to maintain an 'accommodative' stance. However, if inflation doesn’t ease in 18-24 months, RBI may need to up rates, he added.