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India’s GDP may grow at just 1.2% in fourth quarter of FY20 due to coronavirus: SBI report

India’s economy is expected to contract by over 40 per cent in the April-June quarter of FY21 on account of about two months of countrywide lockdown due to the coronavirus crisis,a  report said. “Q1GDP FY21 loss will be humongous and could even exceed 40%. However, Q2GDP numbers could witness a smart recovery and clock 7.1%, if we are able to sustain the demand. Q3 and Q4 growth numbers could also look much better, with an average of 6%, but the Q2 bump could come down with the immediate bust in pent up demand in Q2 subsiding subsequently,” SBI’s Ecowrap report said.

India’s gross domestic product (GDP) may grow at 1.2 per cent in the fourth quarter of the previous fiscal owing to an economic shutdown due to the coronavirus crisis, a report added. The GDP growth is likely to be 4.2 per cent for FY20. It is expected to be (-) 6.8 per cent for fiscal year 2020-21.

“Q4 (FY20) GDP growth would be around 1.2 per cent as the economic activity in the last seven days of March month was completely suspended due to the nationwide lockdown,” it added. The report has pegged a loss of nearly Rs 1.4 lakh crore in the given period. The fourth quarter GDP growth data is scheduled to be announced by the government on May 29.

Meanwhile, Goldman Sachs recently said that India’s economy may contract by 45 per cent in the June quarter.