Indian economy likely to contract 5% in FY21 - S&P Global Ratings
Indian economy likely to contract 5% in FY21 - S&P Global Ratings

Indian economy likely to contract 5% in FY21 – S&P Global Ratings

  • Global ratings agency S&P on Thursday lowered its growth forecast for India for the current fiscal and estimates the economy to contract 5%, sharply down from its April projection of 1.8% growth.
  • S&P attributed the contraction to the impact of the lockdown. “The pandemic in India and two months of lockdown have led to a sudden stop in the economy. That means growth will contract sharply in this fiscal year. Economic activity will face ongoing disruption over the next year as the country transitions to a post-Covid-19 world.
  • S&P Global Ratings expects varying degrees of containment measures and economic resumption across India during this transition,” S&P said.
  • Several banks, brokerages, economists and multilateral agencies have sharply cut the country’s growth estimates with SBI research estimating a contraction of 6.8% for the current fiscal year as the impact of the lockdown, aimed at stopping the spread of the pandemic, dents growth.
  • The RBI also expects the economy to contract due to the impact of the lockdown on economic activity. S&P said Covid-19 has not yet been contained in India. It said that areas currently classified as red zones are also economically significant, and the authorities could extend mobility restrictions.

About S&P Global Ratings- 

  • The RBI also expects the economy to contract due to the impact of the lockdown on economic activity. S&P said Covid-19 has not yet been contained in India. It said that areas currently classified as red zones are also economically significant, and the authorities could extend mobility restrictions.
  • Founded – 1860
  • Headquarters– New York
  • Founder – Henry Varnum Poor
  • President– John Berisford

 जीके और दैनिक करेंट अफेयर्स अपडेट हिंदी में प्राप्त करें – क्लिक करें