Focus: GS-III Indian Economy
Why in news?
The Indian economy is the worst-hit among major economies, American brokerage Goldman Sachs said, sharply cutting its FY21 GDP forecast to a contraction of 14.8%.
- The estimate comes days after official data said the economy contracted by 23.9% for the June 2020 quarter, as activity across all sectors barring agriculture contracted due to the lockdowns.
- The 14.8% contraction is among the most pessimistic of all the analyst estimates till now.
- Earlier, analysts at India Ratings and Research revised down their estimate to an 11.8% contraction for FY21, while economists at India’s largest lender SBI are now expecting a 10.9% contraction.
- The brokerage said there would be a sharp rebound in FY22 due to the low base.
- It estimated GDP growth of 15.7% in the next fiscal. Assuming 70% of the output lost in June is recovered in June 2021, they expect real GDP growth of 27.1% in the April-June 2021 quarter.
-Source: The Hindu