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ICRA revises FY21 GDP forecast, predicts steeper contraction of 11%

ICRA cited the continued rise in COVID-19 cases across the country as the reason for the change in GDP forecast.

September 29, 2020 / 10:27 PM IST

Rating agency ICRA has revised its gross domestic product (GDP) forecast for 2020-21 to a contraction of 11 percent from an earlier estimate of -9.5 percent.

ICRA cited the continued rise in COVID-19 cases across the country as the reason for the change in GDP forecast.

According to official data, India's GDP shrunk 23.9 percent during the April-June period, amid a stringent COVID-induced lockdown.

ICRA expects the YoY GDP contraction to narrow to 12.4 percent in July-September quarter. It added that it expects the economic situation to improve in H2FY21, relative to the first half of the fiscal year.