Crisil now sees GDP shrinking 9% in FY21

Crisil Research on Friday said India’s Gross Domestic Product (GDP) would shrink 9% in FY21, wider than its May estimate of a 5% contraction. This rate of fall has not been seen since the 1950s, it added.

“With the pandemic’s peak not yet in sight and the government not providing adequate direct fiscal support, the downside risks to our earlier forecast have materialised,” Crisil Research said.

“If the pandemic were to peak out in September-October, GDP growth could move into mildly positive territory towards the end of this fiscal... But the risks to our outlook remain tilted to the downside till such time a vaccine is found and mass produced,” it said.

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