India's GDP expected to contract by 9.6%

Washington: The World Bank on Thursday said that India's GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the Covid-19 pandemic, noting that the country's economic situation is "much worse" than ever seen before.

The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World Bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years.

"India's GDP is expected to contract by 9.6 per cent in the fiscal year that started in March," the World Bank said in the report released here.