Search ForexCrunch

Indian economic outlook remains dour, as the impact of the COVID-19 outbreak is expected to deepen the job crisis, according to the latest Reuters poll of 29 economists.

Key takeaways

“The May 20-27 poll showed the outlook for the current quarter was lowered to 21.6% annually, and to 9.8% on average for this fiscal year, down from 23.0% and 10.4% respectively a month ago.”

“The economy was then forecast to grow 6.7% next fiscal year, compared to 6.5% predicted previously.”

“While the consensus pointed to healthy growth figures later this year, all 29 economists, in response to an additional question, warned the outlook was either “weak and prone to further downgrades” or “fragile, with a limited downside.”

“When asked if there was a risk that India’s unemployment situation could worsen over the coming year, more than 85%, or 25 of 29 respondents, said it was high, including four who said very high. The remaining four said the risk was low.”