Covid-19 crisis to bite India deeply, GDP to shrink 6% in FY21: DBS report

The yet to be stabilised infection curve reflects a deeper double-digit contraction in Q1 of FY21 and a shallower pickup in Q2 and a return to growth in Q3

Citing the yet to be stabilised infection curve and the Covid-19 caseload in economically key states, Singaporean brokerage DBS on Wednesday forecast deeper distress for the country which will lead to a 6 per cent growth contraction in FY21.

In its earlier forecast, the brokerage had penciled in a minus 4.8 per cent growth for the current fiscal.

According to the report, just 7 per cent of the districts in economically key states of Maharashtra, Tamil Nadu and Gujarat, accounting for 30.5 per cent of the national economic output, and in Karnataka and Andhra Pradesh account for as much as