The corona virus is becoming a major crisis for the Indian economy. The already sluggish economy is at a 30-year low. Rating agency Fitch has guessed this. Fitch on Friday lowered India’s growth rate projections to 2 per cent. This will be a lowest level of 30 years.
“We anticipate a global slowdown this year and India’s growth projections have been reduced to 2 per cent in the financial year ending March 2021,” Fitch Ratings said in a statement. Even then Fitch had lowered its earlier estimate, which has now been further slashed.
ADB projected to grow at 4 per cent
Earlier, the Asian Development Bank (ADB) has projected that India’s economic growth may decline to 4 per cent in FY21. “Sometimes it is very challenging to face times,” said ADB President Masasugu Asawawa. Kovid-19 has affected the lives of people around the world and disrupted industry and other economic activities,” he said.
Meanwhile, Moody’s Investors Service changed the outlook of Indian banks from stable to stable, after which banking shares fell by 15 per cent. Moody’s estimates that the decline in economic activity due to the Corona virus epidemic will lead to a decline in the quality of banks’ assets.
Let’s say that a 21-day lockdown is underway to prevent corona virus infection. The lockdown could cause the country’s economy to lose $100 billion, or about Rs 7.6 lakh crore. In a report, acute ratings, an agency, said it could cause a loss of $4.5 billion, or about Rs 34,000 crore, per day to the Indian economy.
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