India’s Economy to Contract 9% in 2021 Fiscal: S&P

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.

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