Covid-19 impact: India's GDP may contract 10.3% in FY21, says IMF

IMF now expected the world economy to fall less severely by 4.4 per cent than 5.2 per cent it projected earlier for 2020

The International Monetary Fund (IMF) on Tuesday sharply revised its projection of contraction in India’s gross domestic product (GDP) for 2020-21 – from 4.5 per cent earlier to 10.3 per cent – citing the rise in Covid-19 cases. The organisation, however, added that the country’s economy might rebound with an 8.8 per cent growth rate in 2021-22, higher than the 6 per cent it forecast earlier.

The IMF, on the other hand, expected the world economy to fall less severely, by 4.4 per cent as against 5.2 per cent it projected earlier, in 2020.

Chief Economic Advisor Krishnamurthy Subramanian  told