The Indian economy is expected to bounce back in the second half of 2020, with a projected growth of 6.7 per cent in the next financial year, as per IHS Market, highlighting a positive economic impact post the COVID-19 challenges.
“The severe negative impact is expected to result in a significant contraction in GDP in the April-June quarter of 2020, resulting in a recession in the 2020-21 financial year with GDP expected to contract by 6.3 per cent year-on-year,” it said in its outlook on the Indian economy.
The digital transformation of India that is currently underway is expected to accelerate the growth of e-commerce, changing the retail consumer market landscape over the next decade. This is attracting leading global multinationals in technology and e-commerce to the Indian market,” Biswas said.
India’s quarterly GDP was estimated to a decline of over nine percent between April and June 2020. This was a decrease from a five percent growth in the beginning of 2020. The country went into lockdown on March 25, 2020, the largest in the world, restricting 1.3 billion people. This was extended until May 3, 2020. India’s government estimated its financial, real estate and professional services sector to be hardest hit during the period of the lockdown.
The Fund now says that Indian GDP in the ongoing financial year, which began in March 2020, will contract by 4.5%. Just a few weeks ago, it had been predicting 2% growth for the year.
But don’t let anyone tell you the pandemic is the main reason India’s growth has gone off a cliff. The economy had already been weakened by years of mismanagement before this crisis struck.
“If there was a time to make a bet on India, there may not be a better time than now. – Gautam Adani”
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Written by: Karan Dholakia
Soureces: ET, Hindustan times
