New Delhi: India’ economy is likely to contract by 9% in the fiscal year ending March 31, 2021, predicted S&P Global Ratings on Monday.
As the country reels under the impact of the COVID-19 pandemic, the economy may shrink by 9% in the current fiscal, larger than the rating agency’s previous estimate of a 5% contraction.
The health crisis will also challenge important reform work that the government has been implementing to liberalize and energize the national economy, S&P said.
India’s economic reopening will require momentous coordination between the public and private sectors. The country will find it difficult to resume production following an extended period of government-mandated, nationwide lockdown introduced in March 2020. Economic activity will likely only meaningfully improve around the end of calendar 2020, it added.