InvestorQ : How do the GDP estimates for FY21 from various agencies look like for the Indian economy?
diksha shah made post

How do the GDP estimates for FY21 from various agencies look like for the Indian economy?

Answer
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Deepa Salunkhe answered.
5 months ago


There is consensus across agencies that FY21 could see deeply negative growth with most agencies downgrading their growth estimates further. GDP estimates for FY21 are showing deeply negative de-growth. Contraction appears to be on the cards as the first two quarters may end up being lost quarters. Goldman Sachs has pegged the GDP contraction in FY21 at (-5%) and CRISIL also pegged at similar level of contraction. That is not great news. Both have held the view that the Rs.20 trillion stimulus packages may impact more in the medium term than in the short term. ICRA also concurs with the (-5%) contraction but believes that stimulus could have been more effective had to focus more on fiscal handouts. However, there appears to be a consensus that the recovery after a couple of quarters could also be fairly sharp and the growth may continue well into FY22.