Indian economy expects to record negative 4.5% growth rate in FY21 – Gulf Today

Indian economy expects to record negative 4.5% growth rate in FY21 – Gulf Today

Indian economy expects to record negative 4.5% growth rate in FY21

2 hours ago

Labourers sit on stacks of wood timber on a tractor in Amritsar, India on Sunday. Agence France-Presse

With economic activities coming to a halt amid the Covid-19 pandemic and the lockdown, the Indian economy is expected to record a negative 4.5 per cent growth rate in the current financial year (FY21), according to the FICCI's Economic Outlook Survey.

The minimum and maximum growth estimate stood at (-) 6.4 per cent and 1.5 per cent, respectively, for FY21, it said.

The quarterly median forecasts indicated 14.2 per cent contraction in the gross domestic product (GDP) in the first quarter of FY21, it added.

The signs of an impending slowdown have been sharply accentuated by the Covid-19 pandemic-induced lockdown. The Covid-19 pandemic has severely hit global as well as domestic growth.

The current round of survey, conducted in June, drew responses from leading economists representing industry, banking and financial services sectors.

Economic activity-wise annual forecast indicated a median growth of 2.7 per cent for agriculture and allied activities for FY21. Agriculture seems to be the only sector with a silver lining.

There's an apparent upside as far as performance of monsoon was concerned this