GDP to contract by 3 per cent: Bank of America

By Author  |  Published: 9th Jul 2020  10:37 pm

Mumbai: India’s GDP will contract by 3 per cent in FY21 because of the coronavirus pandemic, assuming the economy is opened up fully from next month, a foreign brokerage said on Thursday.

Bank of America Securities noted that the GDP growth decelerated to 4.2 per cent in 2019-20, the weakest in over a decade. But the biggest strength is the over $500 billion in forex reserves, which have been accumulated by the RBI over some months.