As India has extended its lockdown by ’19 days’ the economic forecast has slid to nothing. Yes, British multinational investment bank Barclays has projected India’s 2020 GDP forecast to be ‘ 0% ‘. The economic loss is estimated to be close to $234.4 billion.
That is India would face losses equivalent to 8.1% of its GDP. The projections on made based on the assumption that India will remain under a partial lockdown at least until the end of May. Earlier the bank predicted an economic loss of $120 billion.
“While India’s COVID outbreak has not officially reached the community transmission stage, we believe the existing restrictions on movement are causing much more economic damage than anticipated. Despite being characterized as essential sectors, the negative impact of the shutdown measures on the mining, agriculture, manufacturing and utility sectors appears higher than we had expected” said the Barclays report.
This comes after the IMF predicted that ‘Global Economy’ would enter a slowdown worst then the ‘Great Depression‘. The reports said that once the lockdown is over, the pace of recovery will be contingent on policy support by the government.