New Delhi, India’s economic growth was expected to slip into the negative zone in 2020-2021 due to the impact of Covid-19, Reserve Bank of India (RBI) governor Shaktikanta Das said Friday, according to dpa.
India went into a nationwide lockdown from March 25 but has been gradually opening up economic activity over the past few weeks.
“Domestic economic activity has been impacted severely,” Das said adding that it had been exacerbated by a collapse in demand. Das did not give any projected figures but said there would be greater clarity on the magnitude of the GDP contraction as the impact of the Covid-19 lockdown was clearer by the end of May. “A gradual revival is expected in the second half of 2021,” the bank head added.
The global economy was inevitably heading into a recession with emerging economies expected to see a shrinking of 2.9 to 6.8 per cent, Das said.
Source: Saudi Press Agency