Categories: Business

GDP up by 20% in June quarter, GDP may fall by 2% in entire fiscal: ICRA

Lockdown

new Delhi. In a new estimate, domestic rating agency Icra said on Monday that India's economy could decline by up to 20 percent in the June quarter. The agency has announced this after the government's announcement to relax the lockdown implemented across the country to prevent the corona virus epidemic. Regarding the entire FY 2020-21, even after the agency relaxed the lockdown, the gross domestic product (GDP) could fall by up to two percent during this period. The agency had earlier said in its estimation that GDP could be in the range of one per cent to one per cent decline in FY 2020-21.

The 40-day-long lockdown in the country has been extended to 17 May. However, the government has relaxed the industry in areas unaffected by the transition. Icra said, the relaxation given by the government would allow it to resume economic activity, but relatively stricter norms in large urban centers would result in disrupting the pace of activities. According to the ICRA report, there may be problems in the availability of labor in sectors like manufacturing, construction, trade, hotels and transport. This will reduce the economic growth rate. ICRA said that in view of all this, we expect that India's GDP will come down by 16 to 20 percent in the first quarter of 2020-21. This means a one-two percent drop is possible in the entire financial year.

This post was published on May 4, 2020 5:52 pm

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