The Finance Ministry during a presentation on Sunday, said that India's nominal GDP is estimated to grow by 19 percent in nominal terms in financial year 2021-22.

"There are varied estimates. The chief economic advisor said in his presentation that it could go as high as 19%, while some had even said it could be 21% as an extreme case and others said it could be more modest," said NK Singh, chairman of the 15th Finance Commission.

Chief economic adviser Krishnamurthy Subramanian expressed optimism saying that many sectors are already on the path of recovery despite this year's GDP contraction.

"When you take into account some of the reforms that have been done on the agriculture side, on labour, on privatization, all those together will increase productivity in the economy and therefore will help bringing back growth," he said.

The nominal GPD contracted by 22.6 percent in the first quarter of this financial year.

The Reserve Bank of India is likely release its own growth forecast on October 1.