Indian economy to contract 5-7% in FY21: Bernstein, Goldman Sachs

Analysts say the Rs 20-trn stimulus package by govt a lost opportunity

Bernstein, the US-based investment management firm, has estimated contraction in the Indian economy at 7 per cent during 2020-21, while Goldman Sachs projected it to be 5 per cent.

The forecasts came even as the government announced a stimulus package, spread over five days, last week.

While Bernstein, which has nearly $623 billion in assets under management globally, kept its projections unchanged after the stimulus, Goldman Sachs now expects a bigger contraction than its earlier estimate of 0.4 per cent. Nomura retained its projection of 5 per cent contraction in FY21 despite the stimulus.

BofA Securities pegged it at 0.1