Monday, Jul 13, 2020 | Last Update : 05:10 PM IST

111th Day Of Lockdown

Maharashtra25442714032510289 Tamil Nadu138470895321966 Delhi112494899683371 Gujarat41906291982046 Karnataka3884315411686 Uttar Pradesh3647623334934 Telangana3467122482356 West Bengal3001318581932 Andhra Pradesh2916815412328 Rajasthan2439218103510 Haryana2124015983301 Madhya Pradesh1763212876653 Assam168071089541 Bihar1630511953125 Odisha13737875091 Jammu and Kashmir105135979179 Kerala7874409532 Punjab78215392199 Chhatisgarh4081315319 Jharkhand3760230831 Uttarakhand3537278647 Goa2453120714 Tripura206714212 Manipur16098960 Puducherry141873918 Himachal Pradesh121391610 Nagaland8453270 Chandigarh5594178 Arunachal Pradesh3601382 Meghalaya295452 Mizoram2311500 Sikkim164810
  Business   Economy  10 Apr 2020  Virus has sharply altered India's economic recovery: RBI

Virus has sharply altered India's economic recovery: RBI

REUTERS
Published : Apr 10, 2020, 12:18 pm IST
Updated : Apr 10, 2020, 1:07 pm IST

India’s economy expanded at its slowest pace in more than six years in the last three months of 2019

 The global economy is expected to slump into recession in 2020 says RBI. (PTI Photo)
  The global economy is expected to slump into recession in 2020 says RBI. (PTI Photo)

MUMBAI: The outlook for India’s economic recovery has been sharply altered by the coronavirus outbreak, the central bank said in its Monetary Policy Report, underlining the pandemic’s deepening impact on South Asia’s engine of growth.

“Prior to the outbreak of COVID-19, the outlook for growth for 2020-21 was looking up,” the Reserve Bank of India said.

“The COVID-19 pandemic has drastically altered this outlook. The global economy is expected to slump into recession in 2020, as post-COVID projections indicate.”

India’s economy expanded at its slowest pace in more than six years in the last three months of 2019 and was projected to clock in full-year growth of 5% which would be the lowest in over a decade.

The nationwide lockdown is set to sharply impact March quarter growth and analysts have cut their 2020/21 GDP growth projections to 1.5-2%, levels unseen in India in decades.

Any benefit seen in the terms of trade from a prolonged downturn in the price of international crude is also unlikely to offset the economic drag from the coronavirus-induced lockdown of the country and loss of external demand, RBI said.

“While efforts are being mounted on a war footing to arrest its spread, COVID-19 would impact economic activity in India directly through domestic lockdown. Second round effects would operate through a severe slowdown in global trade and growth,” the central bank said.

The RBI, as it did in its policy statement last month, reiterated that conditions remained highly uncertain and said it is refraining from providing any projections on GDP growth.

Describing the present environment as “highly fluid”, the central bank said that it is assessing the “the intensity, spread and duration of COVID-19.”

India has reported over 5,000 active coronavirus cases and 166 deaths as of Thursday morning.

Tags: economic growth, coronavirus (covid-19), india’s economic growth, coronavirus outbreak, reserve bank of india, global economy, nationwide lockdown, gdp growth rate, covid-19 cases
Location: India, Maharashtra, Mumbai (Bombay)