India GDP to fall 7.5% if Covid-19 vaccine delayed, 4% in base case: Report

Many analysts are expecting the Indian economy to contract by 5 per cent in FY21 as a result of the nationwide lockdowns, with some also estimating a contraction of up to 7.2 per cent in the GDP

A longer wait for a vaccine against Covid-19 virus may lead to a contraction of up to 7.5 per cent in the Indian GDP in FY21, a foreign brokerage said on Monday.

Economists at Bank of America Securities also revised down their base case estimates on the real GDP within a week, and now expect it to contract by 4 per cent because of a drop in economic activity.

It can be noted that multiple efforts to find a vaccine against the dreaded virus are on both globally as well domestically, but no timelines have been announced yet.

Many analysts