The Indian economy can contract by 7.7 per cent in the current financial year ending on March 31 and the growth could be 11 per cent in the next financial year, according to the Economic Survey tabled in Parliament by Finance Minister Nirmala Sitharaman.

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. It expects a growth rate of 11.5 per cent in 2021-22 before a decline to 6.8 per cent in 2022-23 and 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.

READ ALSO: IIT Madras Prof Ashok Jhunjhunwala to be part of RBI's innovation hub to promote fintech research

"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.

"The upturn in the economy while avoiding a second wave of infections makes India a sui generis case in strategic policymaking amidst a once-in-a-century pandemic," it added.