‘Zero growth’ predicted in 2020-21 in India: Barclays

Barclays on Tuesday revised its growth estimate for India from 2.5% and said that the country will witness 0% GDP growth this year, owing to the lockdown that has been enforced.

The previous estimate depended on the lifting of the lockdown on April 14, however now that it has been extended till May 3, a gloomy prediction has been made.

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With the economy shut down, the growth prospects appear to be weak, according to the report.

“Our estimates continue to assume that the lockdowns end by early June, followed by a modest rebound in activity, reflecting inventory rebuilding across certain sectors. However, if we are still seeing localised COVID outbreaks, which lead to frequent shutdowns, the scope for the economy to recover will continue to decline,” Barclays said.

It also expects the growth to be muted during the month of May. The methodology used remains unclear yet.

Prime Minister Narendra Modi on Tuesday extended the lockdown till May 3 to contain the spread of the deadly virus.

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