Categories: Business

LNP – India’s economy to contract as Covid-19 cases soar

India’s economy may shrink in the current quarter as Covid-19 cases surge, but the country could recover in the next one, according to two economists.

On Tuesday, India reported another 323,144 cases, bringing the country’s cumulative infections to more than 17.6 million. That comes after the country reported five straight days of record new daily cases.

Sonal Varma, India chief economist at Nomura, said the country is “clearly going to see a sequential growth hit” in its first quarter. India’s fiscal year begins in April and ends in March the following year.

She predicts that gross domestic product will shrink around 1.5% in the current quarter, which ends in June. Varma added there is “downside risk” to this estimate.

While there have been fresh lockdowns or curfews in some states, cases remain high and more restrictions are expected, Varma told CNBC’s “Street Signs Asia” on Tuesday.

“This is definitely going to impact activity in April and also in May,” she said.

AddThis Website Tools
Tyronne Jayamanne

Recent Posts

LNP – 50 major bus stands to be renovated under ’Clean Sri Lanka’ initiative

LNP – 50 major bus stands to be renovated under ’Clean Sri Lanka’ initiative

The government is planning to renovate 50 major bus stands nationwide, including the Colombo Central…

11 hours ago
LNP – US crude oil futures fall over $3 as Trump announces Israel-Iran ceasefire

LNP – US crude oil futures fall over $3 as Trump announces Israel-Iran ceasefire

Oil prices tumbled on Tuesday to their lowest level in more than a week as…

14 hours ago
LNP – Sri Lankans in Qatar advised to remain vigilant and closely monitor directives

LNP – Sri Lankans in Qatar advised to remain vigilant and closely monitor directives

Sri Lankan citizens in Qatar have been advised to stay indoors, remain vigilant and closely…

14 hours ago

LNP – Sri Lankan leaves Iran using special evacuation flight operated by India

A Sri Lankan national has left Iran and reached New Delhi last evening (23) on…

14 hours ago

LNP – Arrest warrant issued against Sajin de Vass Gunawardena

Colombo Additional Magistrate Pavithra Sanjeewani Pathiraja today issued an arrest warrant against former Parliamentarian Sajin…

1 day ago

LNP – Sri Lankan film ‘Riverstone’ picks up two awards at Shanghai International Film Festival

The 27th Shanghai International Film Festival (SIFF) celebrated the best in global cinema at a…

2 days ago