OECD cuts India's FY21 GDP contraction rate to 9.9% from 10.2% earlier

Expects Budget to be cautious on fiscal expansion, sees rate cut by RBI around turn of the current financial year

The Organization for Economic Co-operation and Development (OECD) has raised prospects of India’s economy by pegging contraction at 9.9 per cent, against 10.2 per cent it projected in September.
 
It forecast that the economy would rebound to 8 per cent in the next fiscal year and 5 per cent a year later, but gross domestic product (GDP) loss would be substantial.
 
With fiscal deficit at around 16 per cent of GDP, it expected the Union Budget for 2021-22 (FY22) to be cautious on stimulus. However, it called for more fiscal measures to mitigate the hardships arising from Covid-19.