Icra narrows its GDP decline forecast for FY21 to 7.8% from 11% earlier

Topics ICRA | GDP forecast | India GDP

Subsequently, improving economic fundamentals, a bright outlook for the rabi season, and the visibility of vaccine availability are expected to strengthen demand, the agency said.
Icra has pegged the contraction in the economy at 7.8 per cent for 2020-21. Before the GDP numbers for Q2 were out, it had predicted the fall in the economy at 11 per cent. After the release of the numbers, it had given a range of 7-9 per cent for GDP decline.

Icra forecast a small contraction of one per cent in GDP during the third quarter of the year. 

Subsequently, improving economic fundamentals, a bright outlook for the rabi season, and the visibility of vaccine availability are expected to strengthen demand, the agency said. 

Further, an expected revival in exports and a rise in the government spending would contribute to a mild 1.3 per cent growth in the fourth quarter, ending the recession gripping the Indian economy, it said.


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel