However, the agency expects India’s gross domestic product (GDP) to rebound and grow 9.9 percent year-on-year in fiscal year 22, mainly due to the weak base of fiscal year 21.
“India’s Fiscal Year 21 GDP Growth Forecast Negative Rating of 11.8 Percent will be the lowest GDP growth in India’s history (GDP data is available from Fiscal Year 1951) and the sixth case of economic contraction, others in fiscal year 1958, fiscal year 1966, FY-1967, FY-1973 and FY-1980, ”said the rating agency in a report.
The previous low was a negative 5.2 percent in fiscal year 80, he said.
The agency said the negative growth of 23.9 percent in the first quarter of fiscal year 21 is the first contraction in the series of quarterly GDP data that has been available in the public domain since the first quarter of fiscal year 1998.
The economic loss in fiscal year 21 is estimated to be Rs 18.44 lakh crore.
According to the agency, retail and wholesale inflation is expected to be 5.1 percent and negative 1.7 percent, respectively, in fiscal year 21.
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