IMF Projects Further GDP Plunge, How Much Longer to Gain Normalcy?

India’s economic growth forecast is projected to contract by 10.3 percent in 2020-21, the International Monetary Fund (IMF) said on Tuesday, 13 October.

(Photo: The Quint)

India’s economic growth is likely to contract by 10.3 percent in financial year 2020-21, falling below Bangladesh in terms of per capita GDP — that's what the IMF has projected in its latest World Economic Outlook report. This is a big downward revision from its previous forecast in June when the body had predicted a 4.5 percent contraction in the current fiscal.

India is expected to see the biggest contraction projected among major emerging markets amid the pandemic. The economy is likely to bounce back with 8.8 percent growth rate next year and even regain its position as the fastest growing emerging economy. The IMF also projected that India will surpass Bangladesh again in 2021.

But how long will it take for the economy to recover to the pre-COVID times? What has India done so far and what more measures can the government take to speed up the process? Tune in to The Big Story!