India’s economic growth rate may contract 16-20% in Q1, said ICRA, rating Agency.
- Another blow to the Indian economy is confirmed by the Rating agency ICRA which has further cut its projections for India’s economic growth rate to -16 per cent to -20 per cent in the first quarter of the current financial year from its earlier estimate of -10 per cent to -15 per cent.
- It is predicted that while the graded relaxations announced by the government will permit the resumption of economic activity, the relatively stringent norms for major urban centres will result in the pace of activity remaining constrained.
- Given the likelihood of mismatches in labour availability, the expected drag from sectors such as manufacturing, construction, trade, hotels and transport, etc, would linger for a large part of May 2020, with a further delay in the return to normalcy for a large cross-segment of these sectors.
