Indian economy to shrink by 11% in FY21, says Icra

New Delhi: Domestic rating agency Icra further revised down its GDP estimate for the country on Monday and now expects the Indian economy to contract by 11% in FY21. The agency, which was earlier estimating a contraction of 9.5%, said the revision has been done as the rate of new Covid-19 infections remains elevated. The RBI is yet to give its estimate on the Gross Domestic Product (GDP) and has been maintaining that it will be contracting. The rating agency added that if the number for Q1FY21 gets revised down after data for the small businesses and less formal sectors becomes available, the overall GDP outcome for FY21 “could be even worse” than estimated by the 11% contraction. pti