India’s gross domestic product (GDP) is expected to contract by 8 per cent in 2020-21, according to the latest round of Federation of Indian Chambers of Commerce & Industry’s (Ficci’s) Economic Outlook Survey.
The annual median growth forecast by the industry body is based on responses from leading economists representing industry, banking and financial services sector. The survey was conducted in January. The median growth forecast for agriculture and allied activities has been pegged at 3.5 per cent for 2020-21. However, industry and services sector, which were severely hit due to the pandemic, are expected to contract by 10 per cent and 9.2 per cent, respectively, during 2020-21.
“The quarterly median forecasts indicate GDP growth to contract by 1.3 per cent in the third quarter of 2020-21. The growth is expected to be in the positive terrain by the fourth quarter with a projection of 0.5 per cent growth,” estimates the survey.
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