Lockdown extension beyond May can lower growth to zero, says CRISIL

The sharp deceleration in growth and increased income uncertainty is certain to pull demand down, it says

Rating agency CRISIL has downgraded its growth outlook for India in 2021 fiscal 2021 to 1.8 per cent from the earlier estimated 3.5 per cent after factoring in the nationwide lockdown.

The forecast by the rating agency assumes the effect of the pandemic subsiding materially in the current quarter, besides a normal monsoon, and minimum fiscal support of Rs 3.5 trillion.

Fiscal support may need to be increased at the central and state levels to ensure relief reaches — to vulnerable households as well as vulnerable firms, especially micro, small and medium enterprises (MSMEs), the global analytics company said