Industry body FICCI has projected a contraction of 4.5 percent in the country’s annual GDP growth for the fiscal year 2020-21. FICCI’s Economic Outlook survey states that it is drastically revising its earlier estimates due to the economic and health crisis that arose due to the rapid spread of Covid-19 worldwide. The industry chamber had projected a GDP growth of 5.5 percent in its January 2020 survey. The epidemic has severely affected economic activity as a lockdown was implemented in the country to prevent the spread of the virus. However, restrictions related to lockdown are slowly being relaxed.
Addressing the SBI Banking and Economics Conclave, RBI Governor Shaktikanta Das said on Saturday that the gradual easing of restrictions is showing signs of the Indian economy returning back on track.
However, according to Das, it is still uncertain how long the supply chain will be able to fully return to the pre-condition and how long it will take for the demand-related items to return to normal.
In May, the Reserve Bank had said that the pace of GDP growth is expected to be in the negative digits in the financial year 2020-21.
Releasing the details of the survey, FICCI said that this economic survey was conducted in June and this survey ranked the views of various leading economists from the industry, banking, and financial services sectors.
FICCI stated, “FICCI’s recent Economic Outlook survey forecasts annual average GDP growth of (-) 4.5 percent in FY 2020-21. According to the survey, a GDP of 14.2 percent in the first quarter of the current financial year. Average contraction is estimated
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