Indian Economy To Shrink By 3.2% In FY20-21: World Bank

New Delhi: The World Bank (WB) has projected India’s economic growth to fall by 3.2 % in the 2020-21 fiscal year due to the lockdown to contain the spread of COVID-19.

“In India, growth is estimated to have slowed to 4.2% in the fiscal year 2019/20 and output is projected to contract by 3.2% in fiscal year 2020/21, when the impact of COVID-19 will largely materialise,” WB said in a report on Monday.

Besides, the world economy will face its worst depression since World War II, it said.

“The global economy will shrink by 5.2% this year. That would represent the deepest recession since the Second World War, with the largest fraction of economies experiencing declines in per capita output since 1870,” the report said.

Meanwhile, many credit rating agencies like Moody’s downgraded India’s growth forecasts to zero in the present fiscal year due to the lockdown.

Moreover, in the last quarter of FY19-20, India’s GDP growth slumped to 3.1% which is the lowest in 11 years, the government’s figures revealed.

Also Read: Post COVID-19: Three Industries That Might Resurrect Global Economy