SBI Research ups projections for economy, narrows GDP contraction to 7.4%

Deloitte says recovery depends on vaccine, spread of Covid cases

SBI Research has scaled up its projections for the economy, projecting gross domestic product (GDP) to contract 7.4 per cent during the current financial year compared to its earlier forecast of a 10.9 per cent fall.   

The author of the report, Soumya Kanti Ghosh, believes it would take seven quarters from the fourth quarter of FY21 for GDP to reach the pre-pandemic level in nominal terms.

He said the revised GDP estimates are based on SBI 'Nowcasting Model' with 41 high-frequency indicators associated with industry activity, service activity, and global economy.

Based on this model, the GDP growth for