New Delhi: Industry body FICCI says that India’s gross domestic product (GDP) growth rate in the current financial year will be negative. The FICCI Economic Scenario Survey has estimated that the country’s economy will go down by 4.5 percent in 2020-21.
The survey said that the rapid increase in cases of corona virus has caused an economic and health crisis worldwide. FICCI’s latest survey has made major downward revisions in the growth rate estimates. FICCI had estimated the growth rate to be 5.5 percent in 2020-21 in the January 2020 survey.
Economic activity has been severely affected by the lockdown implemented across the country to control the corona virus. However, restrictions are now gradually being relaxed. Reserve Bank of India Governor Shaktikanta Das, while addressing the Banking and Economy Conclave of State Bank of India on Saturday, said that the Indian economy has now started returning to normalcy.
In May, the Reserve Bank said that the country’s growth rate will remain in the negative zone in 2020-21. FICCI has done an economic scenario survey in June. Releasing the details, the Board of Industries said that it has considered the views of leading economists in the industry, banking and financial services sectors. The survey said that the average growth rate of GDP will be -4.5 percent in 2020-21.
