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India economy to contract by 3.2% in FY21: World Bank

The World Bank revised its January projection on India by a massive -9% for 2020 and -3% for 2021.

June 09, 2020 / 02:19 PM IST

India's economy will shrink by 3.2 percent in the current fiscal, the World Bank said on Monday as it joined a chorus of international agencies that are forecasting a contraction in growth rate due to the coronavirus lockdown halting economic activity.

The Washington-based multilateral lender said that the COVID-19 pandemic and the multi-phased lockdown imposed to curb its spread has resulted in a devastating blow to the Indian economy.

In its latest edition of the Global Economic Prospect, the World Bank downgraded its projection of India by a massive negative nine percent.

However, the Indian economy is expected to bounce back in 2021, the World Bank said.