Pandemic Fallout: India To Suffer Worst Economic Plunge, Informal Sector Hit Hard

Faced with an unprecedented downturn, India’s economy is expected to contract by 9.6 percent in the fiscal year that started in March 2020, the World Bank said in its half-yearly regional update on Thursday, calling for critical reforms to reverse the sudden and steep economic impacts of COVID-19.
However, India’s growth is projected to rebound to 5.4 percent in FY22, assuming COVID-related restrictions are completely lifted by 2022. Weak activity, domestically and abroad, is also likely to depress both Indian imports and exports, the body said.
It added that "Regional growth is projected to rebound to 4.5 percent in 2021. Factoring in population growth, however, income-per-capita in the region will remain 6 percent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic".
Goldman Sachs has projected India’s economy by -14.8%, Fitch’s forecast stood at -10.5%, Goldman predicts a contraction of -14.8% and the World Bank reduced its prediction from -3.2% to -9.6%.
It added that "Regional growth is projected to rebound to 4.5 percent in 2021. Factoring in population growth, however, income-per-capita in the region will remain 6 percent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic".
Goldman Sachs has projected India’s economy by -14.8%, Fitch’s forecast stood at -10.5%, Goldman predicts a contraction of -14.8% and the World Bank reduced its prediction from -3.2% to -9.6%.
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