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Last Updated : May 27, 2020 06:05 PM IST | Source: Moneycontrol.com

In Pics | India's FY21 GDP growth forecasts: A look at predictions by leading agencies

The agencies believe the Indian economy will find it hard to overcome the after-effects of coronavirus-induced lockdown restrictions and the stimulus package measured by the government may not be enough.

Amid the nationwide lockdown in India in the wake of coronavirus outbreak, many rating agencies has cut India’s Gross Domestic Product (GDP) growth forecast. Some analysts have dropped India’s growth projection for 2020-21 impacted by the ongoing coronavirus crisis. The negative outlook on India’s rating shows that the GDP will remain lower than the past. Take a look at the report of few rating agencies on India growth forecast. (Image: Moneycontrol)
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The lockdown restrictions have crippled economic activities. Taking note of this, many leading agencies have slashed India's Gross Domestic Product (GDP) growth forecast. here we take a look at some of the key points from their reports. (Image: Moneycontrol)

Moody's Investors Service | On May 8 the rating agency projected India's growth at zero percent for the current fiscal and said the negative outlook on sovereign rating reflects increasing risks that GDP growth will remain significantly lower than in the past. (Image: Moneycontrol)
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Moody's Investors Service | On May 8, the rating agency projected India's growth at zero percent for the current fiscal and said the negative outlook on sovereign rating reflects increasing risks that GDP growth will remain significantly lower than in the past. (Image: Moneycontrol)

Goldman Sachs | The agency released a report on May 17 which estimated real GDP to fall by 5 percent in fiscal year 2021. The report also says that the government’s stimulus package to revive the economy is unlikely to have any immediate impact on growth. According to Goldman Sachs, the aggregate discretionary component of fiscal support announced by the finance ministry, including Rs 1.7 lakh crore package announced March, stands at 1.3 percent of GDP ($2.7 lakh crore), “much smaller than the aggregate figure of 10 percent of GDP (Rs 20 lakh crore) announced by the Prime Minister Narendra Modi. (Image: Reuters)
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Goldman Sachs | The agency released a report on May 17 which projected real GDP to fall by 5 percent in fiscal year 2021. The report also said that the government’s stimulus package to revive the economy is unlikely to have any immediate impact on growth. According to Goldman Sachs, the aggregate discretionary component of fiscal support announced by the finance ministry, including Rs 1.7 lakh crore package announced March, stands at 1.3 percent of GDP ($2.7 lakh crore), “much smaller than the aggregate figure of 10 percent of GDP (Rs 20 lakh crore) announced by Prime Minister Narendra Modi. (Image: Reuters)

Icra | Domestic rating agency Icra on May 20 warned of a deep recession as it predicted that Indian Economy will witness a contraction of 5 percent in FY21, citing the very modest fiscal support, extension of the nationwide lockdown and looming labour shortage. (Image: Moneycontrol)
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Icra | Domestic rating agency Icra on May 20 warned of a deep recession as it predicted that the Indian economy will witness a contraction of 5 percent in FY21, citing the very modest fiscal support, extension of the nationwide lockdown and looming labour shortage. (Image: Moneycontrol)

Fitch Ratings | On May 26, the rating agency forecasted a 5 percent contraction of Indian economy in the current fiscal. This is substantially lower than 0.8 percent growth for 2020-21 fiscal projected in April. (Image: PTI)
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Fitch Ratings | On May 26, the rating agency predicted a 5 percent contraction of Indian economy in the current fiscal. This is substantially lower than 0.8 percent growth for 2020-21 fiscal projected in April. (Image: PTI)

Crisil | The rating agency in its report April 27, halved its GDP forecast for India to 1.8 percent for 2020-21. The agency projected a total loss of Rs 10 lakh crore due to the nationwide lockdown to combat the coronavirus spread. (Image: Moneycontrol)
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Crisil | The rating agency  has revised its FY1 growth forecast to -5 percent from 1.8 percent. The agency has projected a total loss of Rs 10 lakh crore due to the nationwide lockdown. (Image: Moneycontrol)

Ind-Ra | India Ratings and Research has also revised the FY2021 economic growth forecast for the country further down to 1.9 percent, the lowest in the last 29 years. (Image: Moneycontrol)
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Ind-Ra | India Ratings and Research has also revised the FY2021 economic growth forecast for the country further down to 1.9 percent, the lowest in the past 29 years. (Image: Moneycontrol)

First Published on May 27, 2020 05:49 pm
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