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Govt, RBI measures have slowed down contraction in economy: NCAER

NCAER expects the economy to grow by 1.3 per cent in FY21 in case there are no supply side disruptions.

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As there have been supply disruptions due to the lockdown, NCAER provided four scenarios where the economy may witness flat GDP, or GDP contraction of 2, 5 and 10 per cent.

Indivjal Dhasmana New Delhi

3 min read Last Updated : Jun 26 2020 | 2:06 AM IST

The National Council of Applied Economic Research (NCAER) on Thursday estimated that the economy would have contracted 12.4 per cent in the current financial year (FY21) had there been no support measures from the government and the Reserve Bank of India (RBI).

Under this scenario, gross value added (GVA) would have contracted 25.7 per cent in the first quarter, 16.7 per cent in the second quarter and 8.1 per cent in the third quarter before growing 0.5 per cent in the fourth quarter of FY21. However, the Council now expects the economy to grow by 1.3 per cent in FY21, given

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