India's Gross Domestic Product (GDP) will shrink 4.5 percent in the current fiscal year, the Union Finance Ministry said in its macroeconomic report.
In its report, the Department of Economic Affairs said that the uncertainty caused because of the absence of a vaccine against the novel coronavirus poses a "serious challenge" to the economy, NDTV has reported.
However, various social welfare schemes rolled by the government will help revive the economy, the report pointed out.
The projection is 6.4 percentage points lower than what the Centre had predicted in April this year.
As per the report, the COVID-19 driven lockdown has led to a sharp decline in imports, which has led to a positive impact on exports. Besides, crude oil prices have been at a record-low in the global markets.
So far, revenue receipts have declined 68.9 percent year-on-year during FY20-21, the report stated further.
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