Business Desk, Tech for FTCP, New Delhi
Updated Tue, 15 Sep 2020 10:59 AM IST
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Big boom will come next financial year
However, ADB forecasts that the Indian economy will witness a big jump in the next financial year 2021-22. ADB said that India's economic growth rate will be 8 percent in the next financial year due to the opening of traffic and business activities.
ADB chief economist Yasuyuki Sawada said, 'India imposed a strict lockdown to prevent the spread of the epidemic. This affected economic activities badly. Expansion of capacity to control, investigate, monitor and treat epidemics is critical for the growth of the economy in the next financial year and beyond. These measures need to be implemented effectively, only then will the economy recover.
S&P also reduced estimates
Earlier on Monday, S&P Global Ratings also lowered India's growth forecast for 2020-21 to a negative nine per cent. S&P Global Ratings Asia-Pacific economist Vishruta Rana said, “Private economic activity has come to a standstill due to the continued increase in the case of Kovid-19”. The US rating agency said, “Due to increasing cases of Kovid-19, private spending and investment in India will remain at a low level for a long time.” S&P Global Ratings estimates that India's gross domestic product (GDP) will decline by 9 percent in the fiscal year ending March 31, 2021. '
Moody's and Fitch also reduced estimates
The rating agency said that as long as the virus does not stop spreading, consumers will be cautious in going out and spending and companies will be under pressure. Last week, two other global rating agencies, Moody's and Fitch, also lowered India's growth forecast.
Moody's has forecast a decline of 11.5 per cent in the Indian economy and 10.5 per cent in the current financial year. However, Goldman Sachs estimates that the Indian economy will decline by 14.8 percent in the current financial year.