The International Monetary Fund in its annual World Economic Outlook significantly downgrades India's growth for the fiscal year 2020 to minus 10.3 pe
The Indian economy, severely hit by the coronavirus pandemic, is projected to contract by a massive 10.3 per cent this year, the International Monetary Fund said on Tuesday.
The economic recovery of India has gained momentum due to the "Aatmanirbhar Bharat" economic package announced in May, said a report by the Department of Economic Affairs (DEA).
Impacted by disruptions caused by the COVID-19 pandemic, India's economy is forecast to contract by 5.9 per cent in 2020, the UN has said in a report, warning that while growth will rebound next year, the contraction is likely to translate into a permanent income loss.
Fitch Ratings on Tuesday projected a massive 10.5 per cent contraction of India''s economy in the current financial year. India recorded one of the sharpest gross domestic product (GDP) contractions in the world in April-June.
Rajan said that because of the slide in the growth over the last few years, India entered the current crisis in a more "debilitated" state as compared to its peers.
India will see a sharp V-shaped recovery in the third and fourth quarter of the current fiscal, but FY21 GDP growth would ultimately be in negative territory as the coronavirus lockdown led to serious demand and supply dislocations, 15th Finance Commission Chairman N K Singh said on Monday.
The RBI had earlier said the country's GDP will contract in FY21, but did not give any number on the same, even as analysts are pegging a negative growth of up to 9.5 per cent.
RBI Governor Shaktikanta Das has said that the Indian economy is showing signs of revival as restrictions across the country are being lifted gradually. He added that post containment of COVID-19, a very careful trajectory has to be followed in the orderly unwinding of countercyclical regulatory measures.
BCCI treasurer Arun Dhumal said that the Chinese sponsorships in events like IPL is supporting the Indian economy.
After a contraction in the current financial year, India's economy is forecast to bounce back with a sharp growth rate of 9.5 per cent next year provided it avoids further deterioration in financial sector health, Fitch Ratings said on Wednesday.
Former finance secretary Subhash Chandra Garg on Tuesday said the Indian economy will shrink by 10 per cent or Rs 20 lakh crore in the ongoing fiscal, the first contraction in over 40 years, due to a "faulty" COVID lockdown.
Union Finance Minister said on Friday that it was hard as of now to gauge the extent of the economic damage of the coronavirus pandemic to the Indian economy
S&P said India has limited room to maneuver on policy support. The Reserve Bank of India has cut policy rates by 115 basis points but banks have been unwilling to extend credit. Small and mid-size enterprises continue to face restricted access to credit markets despite some policy measures aimed at easing financing for the sector.
The Indian economy is likely to slip into recession in the third quarter of this fiscal as loss in income and jobs and cautiousness among consumers will delay recovery in consumer demand even after the pandemic, says a report. According to Dun & Bradstreet's latest Economic Observer, the country's economic recovery will depend on the efficacy and duration of implementation of the government's stimulus package.
Speaking ahead of Finance Minister Nirmala Sitharaman's press briefing at 4 pm today, Sanjeev Sanyal said that the Rs 20 crore economic stimulus package will see significant changes for Land, Labour and Law.
Congress leader Rahul Gandhi in his series of interaction with economic leaders have now spoken to Nobel laureate Abhijeet Banerjee who has suggested that people should be given money directly if the government wish to revive the economy fast.