In October 2020, World Bank expected India's GDP to contract by how much percent in the fiscal year 2020-21?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 9.6..
- India’s GDP is forecast to plunge in 2020-21 by 9.6% (revised down since June from a 3.2% drop), reflecting the impact of the national lockdown and the income shock experienced by households and small urban service firms, according to the World Bank.
- Growth is forecast to return to 5.4% in FY22, assuming Covid related restrictions are completely lifted by 2022.
- The latest forecast from the World Bank is in line with the assessment of other economists, multilateral agencies and in vestment banks which have estimated the economy to shrink between 5% to 15% in the current fiscal year.