According to S&P global rating economy of India will shrink 5% in current fiscal year, despite economic stimulus package announced by government. All sectors of Indian economy affected and 1.2% of direct stimulus package will not be enough to ensure GDP growth in current year. Another 8.8% of the stimulus package gonna provide liquidity support but not gonna directly support GDP growth.

Expected that economic growth will rebound to 8.5% in next fiscal year. The World Bank predicted that Indian economy will contract by 3.2% in this fiscal year. Because of unnecessary strict lockdown and quarantine Indians developed fear of loosing income and not willing to spend on something more than essentials. What happens when people stop spending on non-essentials? No GDP growth.

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