Care Ratings on July 2 revised India’s GDP growth forecast for the current financial year to (-) 6.4 percent as economic activity continues to be under restriction. The rating agency, in May, had projected a decline in GDP growth of 1.5-1.6 percent in FY21.It said given that the nation is into a lockdown for July too with several restrictions on resumption of services in particular as well as movement of people, the cutoff date for normalcy will spread into the latter part of the third quarter and more likely to the fourth quarter. The sharper fall in real GDP also means that the nominal GDP for the year will also decline assuming inflation of 5 percent which in turn will affect the projected fiscal deficit number of the central government which will be in the region of 8 percent for FY21, it said. In FY20, the country’s economy grew at an estimated 4.2 percent, almost a decade low.

(Moneycontrol)