InvestorQ : Is it true that Indian economy could contract by 16% in the Jun-20 quarter?
Aashna Tripathi made post

Is it true that Indian economy could contract by 16% in the Jun-20 quarter?

Answer
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Aditi Sharma answered.
1 month ago


That is the estimated put out by the SBI research team. It has reported that the Indian economy could contract by 16.5% in the Jun-20 quarter on a YOY basis. This is better than their original estimate of 20% de-growth as results have been better than expected.

SBI Research has pointed out that the economic activity may be showing early signs of turnaround. India’s factory output or IIP contracted sharply for the fourth straight month in June, but at a progressively slower pace compared to April and May.

The weakness is expected to continue through the fiscal. SBI Research expects the GDP growth to contract by 15.2% YOY in Q2, and again contract by 4.2 per cent in the second half of the fiscal. For the full fiscal year 2020-21, SBI expects real GDP contraction of 5%.