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India’s GDP likely to contract by massive 10.3% in 2020: IMF

14 Oct 2020 Evaluate

The International Monetary Fund (IMF), in its latest 'World Economic Outlook' report, has said that India’s Gross domestic product (GDP), severely hit by the coronavirus pandemic, is projected to contract by a massive 10.3 percent in 2020. However, it said the country is likely to bounce back with an impressive 8.8 percent growth rate in 2021, thus regaining the position of the fastest growing emerging economy, surpassing China's projected growth rate of 8.2 percent.

According to the report, India is among those likely to suffer the greatest damage from global warming, reflecting its initially high temperatures. For India, it said the net gains from climate change mitigation-relative to inaction-would be up to 60-80 per cent of GDP by 2100. It noted that while estimates of losses from climate change are somewhat smaller for colder regions (for example, Europe, North America, and east Asia), these are likely underestimations as they do not include a number of damages (for example, rise in sea levels, natural disasters, damage to infrastructure from thawing of permafrost in Russia) and negative global spillovers from large economic disruptions in other parts of the world.

The report further said global growth would contract by 4.4 percent this year and bounce back to 5.2 percent in 2021. America's economy is projected to contract by 5.8 percent in 2020 and grow by 3.9 percent the next year. China is the only country, among the major economies, to show a positive growth rate of 1.9 per cent in 2020.

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