India GDP to fall 45 per cent in June quarter, predicts Goldman Sachs

Predicts a 5 per cent GDP contraction for India in FY21, says recently announced reforms not to have immediate impact on reviving growth

Goldman Sachs now expects India's gross domestic product (GDP) to contract by a record five per cent during 2020-21 against a contraction of 0.4 per cent estimated earlier, saying the reforms announced by finance minister Nirmala Sitharaman will not revive economic growth immediately. 

"The -5% growth we forecast for FY21 would be deeper compared to all recessions India has ever experienced," it said. 

The financial services firm pegged fall in the GDP to 45 per cent in the first quarter of the current financial year over the fourth quarter of the previous financial year (annualised) compared to 20 per cent