India Rating and Research Agency (Ind-RA) has revised GDP’s projection for FY 2020-21. Accordingly, it has projected 7.8 percent contraction for the economy for FY 2020-21 as compared to 11.8 per cent degrowth estimated earlier and GDP to grow by 9.6 percent in FY 2021-22.
Ind-Ra expects third quarter (Q3) to see contraction at 0.8 percent and fourth quarter (Q4) to print in 0.3 percent growth as against the earlier expectation of positive numbers only in July-September 2021-22.
Further, the agency expects 3.5 percent growth for agriculture, contraction of 10.3 percent for industry and 9.8 percent for services, in 2020-21.
However, it expects the retail and wholesale inflation to average 6.8 percent and – 0.3 percent respectively in FY 2020-21, providing very little to the Reserve Bank to make any changes in the policy rates.