Amid concerns of impact of deadly coronavirus on the domestic as well as the global economy, The Organisation for Economic Cooperation and Development (OECD) has slashed its Gross Domestic Product (GDP) growth forecast for India to 5.1% from the earlier projection of 6.2% for fiscal year 2020-21 (FY21). The Organisation said the adverse impact on confidence, financial markets, travel sector and disruption to supply chains contributes to the downward revisions in all G20 economies in 2020, particularly ones strongly interconnected to China. India is a member of G20, a grouping of developed and developing economies.
As per the latest OECD Interim Economic Outlook Forecasts, the country’s real GDP growth is expected at 5.1% during the fiscal year starting April 1, 2020 and improve to 5.6% in the following year. The latest projection for 2020-21 is 1.1 percentage point lower than the November 2019 forecast. It has projected the growth at 4.9% for the financial year ending March 2020.
The report said coronavirus (COVID-19) outbreak has already brought considerable human suffering and major economic disruption. Output contractions in China are being felt around the world, reflecting the key and rising role China has in global supply chains, travel and commodity markets. Subsequent outbreaks in other economies are having similar effects, albeit on a smaller scale.
