India’s GDP May Drop to Multi-Decade Low of 1.6%: Goldman Sachs

Economic growth is likely to plummet to a multi-decade low of 1.6 per cent in fiscal year 2020-21 due to COVID-19 pandemic and ensuing measures like lockdowns and social distancing, an American brokerage said on Wednesday in one of the bleakest forecasts on GDP yet.

Indian policymakers have not been aggressive enough in their response till now to the crisis, and will need to eventually intensify their efforts, economists at Goldman Sachs said.

It can be noted that growth was estimated to slide to a decadal low of 5 per cent for FY20 even without the pandemic, and the virus outbreak has only worsened the woes.