India's economy may see first contraction in 40 years on lockdown extension

India’s economy may be heading for its first full-year contraction in more than four decades after the government extended the lockdown to contain the coronavirus.
 

The lengthening of the mandatory stay-at-home period to 40 days from 21 days will result in a direct output loss of more than 8 per cent  over that time, according to Sonal Varma of Nomura Holdings.
 

Varma and Kunal Kundu of Societe Generale GSC now predict a decline in GDP for the year to March 2021 of 0.4 per cent and 0.1 per cent, respectively. The economy had last contracted in 1980, when GDP shrank