India may see 7.3% contraction if coronavirus strikes again: OECD

If it doesn't, the grouping of advanced countries in its twice-yearly publication-OECD Economic Outlook-- said that it expected India's economy to contract 3.7 per cent during the year.

The Organization for Economic Co-operation and Development (OECD) on Wednesday projected that India’s economy will contract 7.3 per cent in the current fiscal year if there is a second wave of the coronavirus (Covid-19) later this year. This is so far the steepest contraction that any agency has predicted for the country.

If there is no second wave, the grouping of advanced countries — in its OECD Economic Outlook — expects the economy to contract 3.7 per cent during the year. 

A renewed virus outbreak will require a new general shutdown in autumn. But the single-wave scenario assumes that the