Economics

Indian Economy Heads for Double-Digit Plunge as Virus Spikes

  • Goldman Sachs, ADB, OECD have downgraded GDP forecasts
  • India’s contraction last quarter was worst among major nations
A healthcare worker screens a person at a Covid-19 test center in Mumbai on Sept. 16.Photographer: Satyabrata Tripathy/Hindustan Times via Getty Images
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India’s economic recovery prospects have gone from bad to worse after the nation emerged as a new global hotspot for the coronavirus pandemic with more than 5 million infections.

Economists and global institutions like the Asian Development Bank have recently cut India’s growth projections from already historic lows as the virus continues to spread. Goldman Sachs Group Inc. now estimates a 14.8% contraction in gross domestic product for the year through March 2021, while the ADB is forecastingBloomberg Terminal -9%. The Organisation for Economic Co-operation and Development sees the economy shrinking by 10.2%.