IMF reduces India’s economic growth forecast for FY 2021 by 1.9%
IMF reduces India’s economic growth forecast for FY 2021 by 1.9%
The IMF estimates that India’s growth rate will be 4.2 per cent for FY 2020, while the statistical department has estimated its estimate for it at 5 per cent.
New Delhi, Business Desk. The International Monetary Fund (IMF) on Tuesday lowered India’s GDP growth forecast for FY2021. The IMF has reduced India’s growth forecast for FY 2021 to 1.9 per cent. Earlier in January, the IMF had estimated this at 5.8 percent. The IMF said the lockdown implemented to prevent the spread of the corona virus would push the global economy into the worst recession since 1930.
The corona virus epidemic has come at a time when India’s economy is already slowing down. Economic activity will be severely affected due to demand and supply being disrupted by the Corona virus outbreak. The IMF estimates that India’s growth rate for FY 2020 will be 4.2 percent, while the statistical department has estimated its estimate for it at 5 percent.
Assuming a baseline scenario, the pandemic will be seen to fade in the second half of the year 2020. The IMF in its bi-annual World Economic Outlook estimated that the global economy will shrink at a rate of 3 percent in 2020. This is worse than the financial crisis of 2008-09. IMF has projected a rapid economic recovery of 7.4 per cent for India in FY 2022.
Prime Minister Narendra Modi in his address to the nation on Tuesday has announced to extend the lockdown till May 3. The PM asked the states to implement the lockdown more stringently by April 20 and thereafter give conditional concessions from lockdowns at selected locations with less risk of corona virus. However, the industries were expected to resume economic activities. Now this will depend on how successful state governments are in limiting the epidemic hotspots. Meanwhile, the corona virus outbreak appears to be increasing day by day on a global scale. Covid-19 cases have crossed 20 lakh worldwide and 1.2 lakh people have died.
