The World Bank on Thursday said that India’s Gross Domestic Product is likely to decline by 9.6% in the 2020-’21 Financial year. It made the observations in the latest South Asia Economic Focus report ahead of its annual meeting including the International Monetary Fund.
In its report, the World Bank said the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India. Prime Minister Narendra Modi had imposed a complete lockdown in the country starting March 25. This was slowly eased from May 1.
The report added Indian economy will bounce back in 2021-’22 with a growth rate of around 6%. But this is 1.4% lower than the projection the World Economic Outlook made in April.