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Ind-Ra slashes India’s GDP growth forecast for FY21 to 1.9% from 3.6%

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On April 27, 2020, India Ratings and Research (Ind-Ra), the Indian subsidiary of Fitch group,has revised India’s gross domestic product (GDP) growth forecasts for the fiscal year 2020-21 (FY 21) to 1.9 % from 3.6% estimated earlier due to the impact of coronavirus (Covid-19) on the economy.Ind-Ra cuts India's FY21 GDP growthKey Points:

i.The ratings, which is lowest in the last 29 years, based on the assumption that the partial lockdown will continue till mid-May 2020. However, if the lockdown continues even after mid-May, the country will register a negative growth of 2.1% lowest in the last 41 years, and only the sixth instance of contraction since fiscal year 1957-58.

ii.It is noteworthy that in the financial year 1991-92, the pace of economic growth of the country was just 1.1 %.

iii.As per Ind-Ra, India’s GDP will revive to the fourth quarter (Q4) of FY20 level only by third quarter-Q3 (October-December) of current FY21, expecting the resumption of normal economic activities during Q2 (July-September) of 2020-21 and festive demand during Q3 of FY21.

About India Ratings and Research (Ind-Ra):
– Mumbai, Maharashtra.
MD & CEO– Rohit karan Sawhney