Rating agency ICRA has revised its growth expectation pertaining to India to a 5 percent contraction in the current fiscal from 1 percent-2 percent growth, as per its latest report.
The report has now estimated a sharp de-growth in the first and second quarters of FY21 at -25 percent and -2.1 percent respectively, a fall from a range of 16 percent-20 percent contraction in Q1 and 2.1 percent growth in Q2 earlier. With two consecutive quarters back to back in contraction, it implied that the economy is heading towards recession.
Projections pertaining to recession are being reported widely across the media as the economic activities are severely hampered due to the ongoing lockdown that has now entered the fourth phase. However, with some relaxation announced during the latest round is likely to offer some respite.
The centre, on the other hand, is claiming that its economic stimulus package is worth 10 percent of GDP or Rs 20.9 lakh crore, analysts have marked it at just 0.8-1.2 percent of GDP.