On Sunday, the FICCI industry body said its Economic Outlook Survey forecast the country’s annual median GDP growth to (-) 4.5 percent for 2020-21.
With the rapid spread of COVID-19 pandemic manifesting in a global economic and health-care crisis, the latest forecast marks a sharp downward revision from the 5.5 percent growth estimate reported in the January 2020 survey, it said.
The pandemic outbreak had a significant effect on economic development, as the nation had to go through a shutdown to test the virus spread. The constraints are slowly eased though.
While addressing SBI Banking and Economics Conclave on Saturday, RBI Governor Shaktikanta Das said that in response to the staggered easing of restrictions, the Indian economy has started showing signs of returning to normalcy.
“How supply chains will be completely restored, however, it is still uncertain; how long it will take to normalize demand conditions; and what kind of lasting effects the pandemic will leave behind on our future growth,” he said.