Home / Economy / News / India GDP could contract 5.3% due to coronavirus 'disorder': India Ratings

India GDP could contract 5.3% due to coronavirus 'disorder': India Ratings

Pandemic disrupted production, broke supply chains 'washed out of activities' in key sectors: Ratings agency.

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The estimate for FY22 is much lower than what other forecasts say

3 min read Last Updated : Jun 25 2020 | 10:30 AM IST

India’s real gross domestic product in Financial Year 2020-21 could contract 5.3 per cent, said India Ratings and Research on Wednesday as it flagged the "disorder" caused to the economy by Covid-19 and the nationwide lockdown to contain the disease.

“This will be the lowest GDP growth in Indian history and the sixth instance of economic contraction, others being in FY58, FY66, FY67, FY73 and FY80,” said the ratings agency in a press release. It expects nominal GDP to contract 3.4 per cent for the year and gross value added to contract by 5.5 per cent.

“The disorder caused by

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