NEW DELHI: Rating agency Standard and Poor’s on Thursday said the Indian economy will contract 5% in FY21 assuming that the ongoing coronavirus pandemic will peak by September quarter.
S&P’s Indian arm Crisil on Monday made similar forecasts. “The covid-19 outbreak in India and two months of lockdown--longer in some areas--has led to a sudden stop in the economy.
That means growth will contract sharply this fiscal year. Economic activity will face ongoing disruption over the next year as the country transitions to a post-covid-19 world," the rating agency said.
Acknowledging a high degree of uncertainty about the rate of spread and peak of the coronavirus outbreak, S&P said it is assuming the pandemic will peak around September quarter.