Indian economy is going to face a 'humongous loss' in the June quarter and Gross Domestic Product(GDP) contraction can exceed over 40% during the quarter, SBI Research said in note released Tuesday.
The research also predicts a a 'smart recovery' of 7.1% for the second quarter, basis the sustainability of the demand. The research note sets provisional estimate for Q4 FY20 around 1.2% as the economic activity in the last 7 days of March month was completely suspended due to nation-wide lockdown from SBI Research estimates that GSDP loss due to COVID-19 for states stands at ₹30.3 lakh crore, which is 13.5% of total GSDP.