Covid-19 impact: Indian economy likely to grow 2% in FY21, says Icra

The rating agency said nationwide lockdown announced to contain the coronavirus outbreak has impacted industries

Icra Ratings on Tuesday sharply cut the country's GDP forecast amid the Covid-19 crisis and expects the economy to grow at just 2 per cent in the current fiscal.

It said the nationwide lockdown announced to contain the coronavirus outbreak has impacted industries and their operations have come to a standstill.

"The Indian economy is likely to witness a sharp contraction of 4.5 per cent (de-growth) during Q4 FY20 and is expected to recover gradually, to post a GDP growth of just 2 per cent in FY21," the rating agency said.

It said the concerns on account of Covid-19 have