Indian economy set to suffer deepest contraction on record – Reuters poll

The latest Reuters poll showed that the Indian economy is poised for almost a double-digit contraction this fiscal year, as the fiscal support does little to counter the economic damage induced by the coronavirus pandemic.

Key takeaways

“Nearly 90% of economists, 34 of 39, who responded to an additional question said the latest government stimulus was not enough to boost the economy significantly.”

“After shrinking a record 23.9% in the April-June quarter, the Indian economy was forecast to contract 10.4% and 5.0% in the third and fourth quarters, respectively and merely stabilize in the first three months of 2021.”

“For the current fiscal year ending March 31, Asia’s third-largest economy was predicted to shrink by 9.8%.”

• USD/INR Price News: Indian rupee eases below 74.00 amid RBI’s cautious optimism, US dollar pullback