Economy

GDP to contract 7.8% in FY21: ICRA

ICRA on Thursday forecast India’s GDP would contract 7.8% in FY21.

Rising raw material and wage costs would partly counteract the positive impact of a modest rise in volumes in the industrial sector in the third quarter, resulting in a small 1.0% contraction, the rating agency said.

“The recovery under way in the Indian economy in Q3 FY2021 is fragile, and appears prone to risks related to rising costs, as well as a reappearance of supply-side disruptions in some States,” said Aditi Nayar, principal economist, ICRA.

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Printable version | Mar 4, 2021 6:04:36 AM | https://www.thehindu.com/business/Economy/gdp-to-contract-78-in-fy21-icra/article33357919.ece

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