Crisil projects wider GDP contraction for FY21 at 9%, from 5% earlier

Attributes it to Covid-19 cases and lack of stimulus from govt

CRISIL on Thursday predicted India’s gross domestic production (GDP) to contract 9 per cent in the financial year 2020-21 (FY21), revising its forecast down from 5 per cent owing to uncertainty over the spread of Covid-19 and lack of adequate fiscal support from the government.

The revision in the forecast comes days after the official data showed GDP fell 23.9 per cent in Q1. The rating agency sees the economy contracting 12 per cent in Q2.

In a report, it said if the infections were to peak in September-October, GDP growth could move into positive territory towards the end of FY21. “Even