India’s economy to contract by 10.3% this fiscal, says IMF

  • India’s economy is expected to contract 10.3% in the current fiscal year as the country and the world reel from the COVID-­19 pandemic, according to the International Monetary Fund (IMF).
  • Global output is projected to shrink 4.4% in 2020, the IMF said in its World Economic Outlook October 2020 report titled, “A Long and Difficult Ascent”.
  • India is expected to rebound in the fiscal year beginning in April 2021 with 8.8% growth — an upgrade of 2.8 percentage points relative to the June update.


Centre may provide further stimulus’

  • The government could announce more relief and stimulus measures to pump-prime the economy in the months to come, with senior government sources stressing that the mini ­stimulus package announced on Monday did not mean that the Centre had closed the option for more steps going forward.
  • Finance Minister Nirmala Sitharaman had announced a package on Monday to spur consumer demand and capital spending, with estimated benefits in the range of ₹73,000 crore to ₹1 lakh crore. The package, estimated to have a fiscal cost of 0.2% of GDP, includes incentives for government employees and formal sector employees to buy consumer goods and other services by using cash vouchers linked to their leave travel allowances.