India’s GDP to contract by 9.6% this fiscal – World Bank

In its latest estimate, the World Bank offered a dire outlook on the Indian economy, citing that the country’s Gross Domestic Product (GDP) is expected to contract by 9.6% this fiscal year due to the coronavirus pandemic induced nationwide lockdown.

Key quotes

“India’s GDP is expected to contract by 9.6% in the fiscal year that started in March. Regional growth is projected to rebound to 4.5% in 2021.”

“The situation is much worse in India than we have ever seen before.”

“It is an exceptional situation in India. A very dire outlook.” 

USD/INR trades flat

USD/INR trades modestly flat around 73.30, having receding sharply from multi-day tops of 73.61 reached a day before. Traders remain cautious ahead of the Reserve Bank of India (RBI) monetary policy decision.