India Ratings and Research has revised the South Asian nation’s GDP growth forecast for FY 2020-21 further downward to a contraction of 11.8% from the earlier contraction of 5.3%.
“The negative 23.9 percent growth in 1QFY21 is the first contraction in quarterly GDP data series. The economic loss in FY21 is estimated to be Rs 18.44 lakh crore,” Ind-Ra said in its forecast.
“However, GDP is expected to rebound and grow at 9.9 percent year-on-year (yoy) in FY22 mainly due to the weak base of FY21,” it added.
The outlook estimates economic loss in the financial year 2020-21 to be over Rs 18.4 lakh crore.
According to the outlook, while a second wave of infections is being witnessed worldwide, the South Asian nation has not been able to flatten the first wave of infection curve.
