India to witness worst GDP fall ever in FY21: Report

India GDP

Research reports by Goldman Sachs and Fitch Ratings on Tuesday projected that India’s economic recession in FY21 is likely to be deeper than estimated earlier due to the lack of required fiscal support, fragilities in the financial system and rising spread of deadly and highly contagious coronavirus cases stopping normalisation in economic activity.

Investment bank Goldman Sachs projects that India’s gross domestic product (GDP) is expected to shrink 14.8% during the current fiscal as compared to earlier estimate of an 11.8% contraction. Meanwhile, Fitch Ratings, slashed its growth forecast for India for FY21 to 10.5%, a figure that is more than double the estimation (5%) projected in June.

Also Read:- Moody’s downgrades India FY21 GDP growth to 0%

According to the latest estimates released by Fitch and Goldman Sachs, India’s GDP projections for the current fiscal is the worst ever contraction witnessed in the history. Earlier, in FY80, India’s GDP contraction at 5.2% was the worst estimates till date.

According to Hindustan Times, in June India’s economy contracted 23.9%, reporting its steepest drop in 40 years. India’s performance was worst among G20 nations, and below expectations than predicted by most of the economists, as the nationwide lockdown induced due to Covid-19 halted the operations across all sectors as staying indoors was the only mandate.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.