The scourge of corona is going to be a huge blow to India’s economy. Global brokerage firm Goldman Sachs has warned that the country’s GDP growth rate will be just 1.6 percent in 2020-21 this fiscal i.e. 2020-21 due to corona outbreaks and lockdowns.
This means that the country will go back several decades in terms of economic growth. Goldman Sash has drastically cut its earlier estimate. Earlier, it had estimated that India’s economy would grow by 3.3 percent this fiscal. According to the company, the US will grow by -6.2 percent in 2020, a decline of so much.
The brokerage firm says the lead is weaker than the 70,80s and recessions have seen in the 2009s. India has been completely lockdown since March 25 and has stalled the entire business and industry.
When will the reform come
However, the brokerage firm has also said that the economy may improve well in the second half of this fiscal year. “We expect the Reserve Bank to continue to soften its monetary policy and also take measures to put liquidity into the system,” Goldman Sachs said in its report. However, if the country has not succeeded in overcoming the epidemic in the next few months, the economy will improve and delay,” they said.
Many agencies have downgraded estimates
It is noteworthy that many rating agencies have already drastically cut India’s GDP growth projection in view of the scourge of corona. The outbreak of coronavirus is continuously causing damage to the economy. Rating agencies are reducing India’s GDP growth projection, including the world. Recently, rating agency Moody’s has lowered India’s GDP projection from 5.3 percent for the calendar year 2020 to just 2.5 percent.
Global credit rating agency Moody’s Investors Service had earlier projected India’s GDP to grow at 5.3 percent. On the Coronavirus crisis, Moody’s says it will be a major setback to the global economy.
According to SBI research report Ecorap, GDP (gross domestic product) growth in 2019-20 may decline from 5 percent to 4.5 percent. According to the report, the GDP growth is projected to be 2.5 percent in the fourth quarter of the current fiscal.
The Asian Development Bank (ADB) has projected that India’s economic growth may decline to just 4 percent in FY 2020.
Gracia is a senior writer at Get Ignite, where she covers media and advertising and co-hosts the Original Content podcast. Previously, she worked as a tech writer at Adweek, a senior editor at the tech blog VentureBeat, and a local government reporter at the Hollister Free Lance. She attended Stanford University and now lives in Brooklyn.