"We hope that it is going to be bottom out soon and we will see a very mild recovery," he said.
Joshi said with the stronger mandate, the Narendra Modi-led government has the ability to take stronger measures to push the economy.
"There is a lot of political capital. How it gets used, I think it needs to be seen?" he said.
On the medium term, the picture looks promising with the economy expected to grow at 7 per cent per year over the next five years. The country's growth trajectory would largely be influenced by the domestic factor as the global environment will be less favourable.
"With the clean up of bank balance sheet, the financial sector will be in a much better position to lubricate the economy and improve credit culture," he said.
Later speaking at a panel discussion, Citi Group's chief economist (India), Samiran Chakraborty, said choke in the credit is the primary factor for the current slowdown.
"I suspect if we can get credit flow back into the system then we will get back to significantly growth path," Chakraborty said.
Joshi further said as there is an end of a deleveraging phase and now corporates will start leveraging which will push the growth. He said to become a $5 trillion economy over the next 5 years, the country will need higher growth in addition to efficiency-enhancing reforms in land, labour and ease of doing business.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.