India's GDP could shrink by 7.5 per cent in FY2021: World Bank

(PTI) Washington, Ta. 8

The World Bank has said that the Indian economy is expected to shrink by 7.5 per cent in the current financial year as economic activity picks up following the Corona lockdown.

The World Bank, in its most recent Global Economic Prospects, has slashed India's economic growth estimates for the current financial year. However, the Indian economy will recover in 2021. In FY2017, India's growth rate was 7.8 per cent. In the financial year 2020-21, India's growth rate will slow to 7.5 per cent.

Earlier, Moody's Investors Service, Fitch Ratings and S&P Global Rating Agency had also projected a four to five per cent slowdown in the growth of the Indian economy.

The World Bank further said that the current financial year will see a 4.7 per cent decline in the global economy following the outbreak of the disease. On the other hand, the emerging economy is projected to decline by 7.5 per cent this year.

Earlier, Crisil had warned that this year's recession would be the worst in India's history. This will be the biggest recession since the liberalization of 191.

The World Bank further said that a number of steps have been taken by the Government of India to bring India out of the recession. However, even after these steps are taken, the current financial year will continue to be economically challenging.