The World Bank has cut India’s gross domestic product (GDP) forecast for FY21.India’s GDP for the fiscal started March is expected to contract by 9.6 percent, compared to June estimates of 4.5 percent contraction, it said in its South Asia Economic Focus report released on October 8.“India’s GDP forecast has been revised down since June from a 3.2 percent drop, reflecting the impact of the national lockdown (for COVID-19) and the income shock experienced by households and small urban service firms,” it said.It added that it expects growth to return to 5.4 percent in FY22, assuming COVID-19-related restrictions are completely lifted by 2022, but mostly reflecting base effects. “The forecast calls for a short-term improvement in current account balances, while capital inflows are forecasted to remain positive in the baseline, barring any unexpected events,” it said.

(Moneycontrol)