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India’s economic growth may fall sharply to 2.6% in 2020-21 amid coronavirus COVID-19 lockdown: SBI report

New Delhi: The nation’s economic growth is probably going to fall sharply to 2.6 per cent in 2020-21 due to lockdown amid the coronavirus pandemic, a analysis report stated on Thursday. According to a report by SBI Research’s Ecowrap, GDP growth for 2019-20 may additionally see a downward revision from 5 per cent to 4.5 per cent, with growth in the fourth quarter of the present monetary 12 months at 2.5 per cent.

“What would impact on India’s GDP because of such a lockdown?… We thus peg our 2020-21 GDP estimate at 2.6 per cent, with a clear downward bias, with first quarter of the next fiscal GDP numbers witnessing a contraction,” the report stated.

Prime Minister Narendra Modi had introduced an entire lockdown throughout the nation for 21 days from Wednesday, asserting that social distancing is the one manner out for the nation in its decisive battle towards coronavirus.

The dying toll due to COVID-19, the illness attributable to coronavirus, in India rose to 16 on Thursday and the variety of constructive circumstances elevated to 694, in accordance to the well being ministry.

“2019-20 fiscal GDP estimates could also see a downward revision from 5 per cent? to 4.5 per cent with fourth quarter of current GDP growth at 2.5 per cent,” it added.

According to the report, the overall price of lockdown is no less than Rs 8.03 lakh crore in nominal phrases, an revenue lack of Rs 1.77 lakh crore and a loss in capital revenue of Rs 1.69 lakh crore.

Stating that the revenue loss would be the highest in agriculture, transport, lodges, commerce and schooling, the report stated, “However, the economic system may recuperate doubtlessly sooner the shortly the stimulus programme is in place. 

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