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ICRA projects India’s GDP growth to contract by 9.5% in FY21 from earlier 5%

Icra sees India's GDP contractingICRA Limited (formerly Investment Information and Credit Rating Agency) projects India’s Gross Domestic Product(GDP) to contract by 9.5%(-9.5%) in FY21 from 5% earlier forecasted as ongoing lockdowns in some states have affected the recovery seen in May and June 2020.

ICRA’s Other projections for India

i.India’s economy to contract by 25% in the 1st quarter of FY21, in the 2nd quarter to contract by 12.4%, in the 3rd quarter to contract by 2.3% and in the 4th quarter to contract by 1.3%.

ii.The agricultural Gross Value Added (GVA) to increase by 3.5- 4% in FY21.

iii.The rural economy to partly counter the slowdown in urban economy and is optimistic in regard to the outlook for agricultural growth and rural consumption.

iv.It anticipates that there will be more unevenness as different regions are moving in and out of lockdowns and continuing labour supply mismatches which affect the supply chains and consumption patterns.

Note– Most of the analysts have projected India’s GDP to contract in the range of 5-6.5% in FY 21.

About ICRA:
Registered Office– New Delhi, India
President– Ramnath Krishnan

Other Related News:

i.India’s GDP to contract by 4% in fiscal 2021 & downgraded its sovereign rating to ‘Baa3’ from ‘Baa2: Moody’s.

ii.Indian economy likely to contract by 1.5% in FY21: Reserve Bank of India (RBI) sponsored Survey of Professional Forecasters (SPF) survey.