The Indian economy is likely to contract by over 10% in FY21 on account of COVID-19 impact, Arthur D Little says in a report. “India is headed towards a W-shaped economic recovery with a potential GDP contraction of 10.8% in FY21,” said Barnik Chitran Maitra, lead author of the report and Managing Partner & CEO of Arthur D Little, India and South Asia. “An opportunity loss of $1 trillion is staring India in its face. For its $5 trillion vision, a radical economic approach is needed, centred on an immediate stimulus and structural reforms,” he said. According to the report, the worst of COVID-19’s impact will be felt by India’s most vulnerable in terms of job loss, poverty increase and reduced per-capita income, all of which will be reflected in a steep decline in GDP. While COVID-19 presents a grave threat to India’s economic potential, it is equally an opportunity for India to revisit all the obstacles that lie in its path to greater prosperity, the report said.

(The Hindu)