Covid-19: India GDP may contract by 2 per cent in FY21, says BoA Securities

The extension of the lockdown by the government will have a deep impact on economic activity, a foreign brokerage said, sharply cutting India's GDP forecast for this financial year to a contraction of 2 per cent.

The estimate has been arrived at with the assumption that the lockdown will extend till mid-July and a restart of the economy will get stretched to August, analysts at Bank of America Securities said. It can be noted that the RBI also expects the economy to contract in FY21 (2020-2021), but has not given a level to it. Some analysts have pegged the contraction