Y21 GDP: Moody’s revises contraction forecast to 11.5%

The global rating firm said the collapse in India’s GDP in the first quarter was one of the sharpest among all major G-20 economies.

India’s real GDP contracted by 23.9 per cent year-on-year in the April-June 2020 quarter, registering the economic impact of the nationwide lockdown measures which were in place from late March till a phased lifting of restrictions began in June. “The collapse in GDP was one of the sharpest among all major G-20 economies,” Moody’s said, adding a rating upgrade is unlikely in the near future.

However, Moody’s said, growth is expected to rebound to 10.6 per cent in 2021-22, reflecting a strong statistical base effect from the low GDP levels of 2020 as economic activity slowly normalises.