Rating agencies peg FY21 GDP estimates between -6.5 to -10%

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Rating agencies peg FY21 GDP estimates between -6.5 to -10%

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Barclays has modestly revised its FY21 GDP forecast downwards to -6.4 per cent from -6 per cent earlier.

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Motilal Oswal expects India's GDP to contract 6.9 per cent in the fiscal year 2021.

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SBI Research, in its latest Ecowrap report, says GDP recovery has been better than expected and based on it, the FY21 GDP estimate has been revised to -7.4 per cent  from earlier -10.9 per cent.

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The central bank now expects the GDP growth at -7.5 per cent in the year ending March 31, 2021, in an upward revision from its earlier forecast of -9.5 per cent.

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India Ratings and Research (Ind-Ra) revised its expectation for India's FY21 gross domestic product (GDP) growth to negative 7.8 per cent from negative 11.8 per cent due to easing of COVID-19 headwinds and better-than-expected 2Q FY21 GDP numbers.

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ICRA has pegged the contraction in the economy at 7.8 per cent for 2020-21. The ratings agency said rising raw material and wage costs in Q3 would partly counteract the positive impact of a modest rise in volumes in the industrial sector.

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The World Bank has trebled its projection of contraction in India's gross domestic product (GDP) in 2020-21 from 3.2 per cent earlier to 9.6 per cent in the wake of lockdowns and a decline in household income.

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The Organisation for Economic Co-operation and Development (OECD) has raised prospects of India's economy by pegging contraction at 9.9 per cent, against 10.2 per cent it projected in September.
Story: Shivani Sharma
Design: Pragati Srivastava