If the pandemic is not brought under control soon and restrictions continue till August, the GDP growth can decrease to 8.8 per cent, Barclays said in a recent report. The economy of India is expected to contract by 7.6 per cent in FY21 due to lockdowns affecting economic activities, jobs and demands.
"As India's second COVID-19 wave continues, there is growing uncertainty around the number of cases and fatalities. Slowing vaccinations are also hurting India's recovery prospects. We lower our FY 2021-22 GDP growth forecast by 1 per cent to 10 per cent to reflect this uncertainty," media reports quoted analysts at Barclays.
Barclays also said that India's vaccination programme has slowed, weighed down by rising supply constraints and logistical challenges and the move to liberalise vaccinations is not likely to have any short-term effects.
The RBI maintains that the Indian economy will grow at 10.5 per cent this fiscal.
Fibre2Fashion News Desk (KD)