The apprehension of the GDP growth rate of India to remain 'negative' in the current financial year!

Fears for the GDP reduction of 4.5 to 5 percent in the Corona crisis

JUNE 27 (WTN) - The Coronavirus infection epidemic to have arisen and spread from Wuhan city in China has so far killed 4 lakh 97 thousand people. But even after this, the leftist government of China is arguing on the boundary with India and other countries instead of understanding its mistakes and responsibility.

As you know, a long lockdown was imposed in India to prevent the spread of the Coronavirus infection disease. Almost all economic activity in India was brought to a standstill due to the long lockdown. While production was stalled on one side due to the lockdown, millions of people have lost their jobs on the other side. Not only this, but a huge decline has also been recorded in the revenue collection of the central and state governments due to the lockdown.

For all these reasons, it is estimated that in the current financial year 2020-21, India's growth rate is going to be negatively affected. It is expected that India's GDP growth rate may remain negative for the first time in the last four decades. Amidst all this, according to S&P Global Ratings, India's economy is currently in a serious crisis, and it is feared that India's GDP is going to be 5 percent lower in the current financial year.

S&P has clearly stated in its report that the GDP could be reduced by up to 5 percent during this current financial year, given the difficulty of preventing the Coronavirus infection, decreasing policy response, and weaknesses. But the economy is expected to recover in the next financial year 2021-2022.

Here, the IMF (International Monetary Fund) has projected India's GDP to decrease by 4.5 percent in the year 2020. According to the IMF, this decline in the GDP will be historic. However, the IMF expects India's GDP growth rate to accelerate in the coming financial year 2021-22.

The IMF estimates that India's GDP growth rate in the year 2021 could be close to 6.0 percent. According to the IMF, the COVID-19 epidemic has had more than a negative impact on economic activity in the first half of 2020. In such a situation, it will affect India's GDP and GDP growth rate.

Now, India's GDP growth rate was just 4.2 percent in the last fiscal year 2019-2020, the negative GDP growth rate in the current financial year is a big cause for concern for the Modi Government. At this time, when there are war conditions on the China border, in this situation, a lot of money is being spent in the deployment of soldiers and weapons. So it can be said that for this reason, the prices of petrol and diesel are increasing every day. Now, it has to be seen how much the people of India support the government in these difficult circumstances?