New Delhi: Domestic rating agency Icra (ICRA) on Monday further downgraded the country’s GDP projections, saying that the Indian economy could decline by 11 per cent during the financial year 2020-21. The rating agency had earlier predicted a 9.5 percent contraction. Icra revised its estimates and said that the rate of Kovid-19 infection in the country remains high. Significantly, after the official figures of growth for the first quarter of the current financial year, some analysts have said that the economy will fall by 14 per cent during the financial year 2020-21.
There has been a 23.9 percent decline in GDP in the first quarter. Icra said that the figures for the first quarter of the current financial year are revised downwards after the figures of small businesses and informal sector come down, so estimates of GDP falling during FY 2020-21 may be worse.
The rating agency has maintained a forecast of 12.4 per cent decline for the ongoing second quarter. ICRA chief economist Aditi Nair said, “With the epidemic continuing for more than six months in India, we understand that the economic component is now adjusting to the crisis, which will lead to gradual recovery after the Kovid epidemic.” Used to be. With the massive Kovid-19 transition, this situation may persist for longer than our previous estimates. “