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Indian economy likely to contract by 16.5% in Q1FY21: SBI report

Based on the leading indicators YoY performance, we expect the gross value added (GVA) de-growth to be between -14.5 per cent and -16.5 per cent in Q1FY21, says Soumya Kanti Ghosh of SBI

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Based on the composite leading indicator (CLI), which is a basket of 41 leading economic indicators, Ghosh deduces that the economic activity is showing early signs of turnaround

Nikita Vashisht New Delhi

4 min read Last Updated : Aug 17 2020 | 3:47 PM IST

The Indian economy may report a contraction of16.5 per cent in April-June quarter of FY21, as against previously expected contraction of 20 per cent, as degrowth in corporate GVA, courtesy better-than-expected results of some financial and non-financial companies, has been significantly better than revenue degrowth in Q1FY21, said economists at India's largest public sector bank State Bank of India (SBI).

"In May, we had indicated that the Q1FY21 GDP growth will exhibit a sharp decline at least in excess of 30 per cent. However, the current situation warrant us to revisit our GDP growth... In principle, revenue decline of listed

Topics : Coronavirus India economy GDP

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