The Covid-19 viral pandemic will send India's struggling economy in reverse. IHS Market expects India's real GDP (Gross Domestic Product) growth for fiscal year (FY) 2020-21 (ending March 2021) will contract 6.3%, as a result of the disease. The country's strict nationwide lockdown to battle the spread of Covid-19 infections shut down most of the economy for nearly two months. While the government is trying to unwind lockdown restrictions, major urban economic areas are still largely under strict containment measures because of rising infection rates. The weak containment of the virus is impacting the ability and willingness of the populace to go out of the home, which has significant negative ramifications for the economy. Prior to the lockdown, consumer spending had been battered by a combination of factors, including falling household savings and stagnant rural income. Uncertainty about health and safety, not to mention weaker business revenues and household income, are likely to undercut the country's recovery, and we expect real GDP growth of just 6.7% for 2021-22.
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