India’s economy has entered the coronavirus crisis with multiple wounds; and without the tactical support of the government, growth would be tough to come.
Growth in gross domestic product (GDP) in the March quarter, which saw just one week of lockdown, has plummeted to its lowest in 11 years.
Manufacturing shrank 1.41% and economists expect it to shrink far more in the current year. Click here to enlarge graphic “The numbers are likely to get very ugly as we go into FY21 now.
The full effect of the lockdown will manifest in the first quarter," said Abheek Barua, chief economist at HDFC Bank Ltd. Barua expects GDP to shrink by 4.8% this fiscal.