The International Monetary Fund said on Tuesday, India’s economy will grow by 10.3% this year due to the coronavirus epidemic, the biggest recession of any major emerging country and the worst since independence.
Even before the epidemic, Asia’s third-largest economy struggled to gain traction, and global activity from the virus and one of the world’s tightest lockdowns hit the country jointly to deliver a severe blow.
In its latest report on the global economy, the IMF estimated that India’s GDP would decline by 10.3 percent in this financial year ending March 31, 2021, the largest contraction since the country became independent in 1947. .
This represents a sharp drop from the IMF’s previous prediction in June when it said production would be reduced by 4.5 percent. It was expected to increase by 1.9 percent in April.
The IMF expects India to grow 8.8 percent next year.
India’s projected slowdown is the largest in any major economy except Italy and Spain, and the largest among the main emerging markets.
According to the IMF report, among other countries of the BRICS group, Brazil’s economy will grow by 5.8 percent, Russia by 4.1 percent, South Africa by 8.0 percent, while China by 1.9 percent.
It added that the global recovery would be “long, uneven and uncertain”, with the exception of China, with prospects of deterioration for some emerging economies, including India.
The Indian economy shrank by 23.9 percent between April and June, official data showed, as the rigorous lockdown imposed in March slowed activity to a near-total.
In a vast country of 1.3 billion people, the shutdown left a large number of people unemployed almost overnight, including millions of migrant workers in the shadow economy.
The government has since relaxed restrictions to ease the economy, with another stimulus package including loans announced this week to boost consumer spending during India’s important upcoming festive season.
It is a coronovirus despite continuing ruggedness in India, with over seven million infections, second in the United States, and about 110,000 deaths.
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