Indian economy to contract by 4% in 2020-21, forecasts ADB
The HinduHit hard by the COVID-19 pandemic, the Indian economy is expected to contract by 4% during the current financial year, the ADB said in a supplement to its Asian Development Outlook on Thursday. ‘Developing Asia’ will barely grow in 2020, as containment measures to address the coronavirus disease COVID-19 pandemic is expected to hamper economic activity and weaken external demand, the ADB said. ‘No V-shaped recovery’ “Economies in Asia and the Pacific will continue to feel the blow of the COVID-19 pandemic this year even as lockdowns are slowly eased and select economic activities restart in a ‘new normal’ scenario,” said ADB chief economist Yasuyuki Sawada. International rating agencies like Moody’s Investors Service, Fitch Rating and S&P Global Ratings have all predicted a 4-5 per cent contraction in India’s economic growth rate during April 2020 to March 2021 fiscal.