Finance Minister Nirmala Sitharaman's 'Act of God' remarks on the slumping economy drew ire from every corner.
Sitharaman had on Thursday said the economy has been hit by the pandemic, which is an 'Act of God', and it will see a contraction in the current fiscal.
"...This year we are facing an extraordinary situation. We are facing an act of God where we may even see a contraction," Sithraman had said while briefing the media on the 41st GST meeting. Now a poll has concluded that the country is set to face a tremendous decline in the GDP due to the coronavirus pandemic.
According to a Reuters poll, India's economy likely suffered its largest quarterly slump on record, as coronavirus-related lockdowns add to already-declining consumer demand and investment.
Economists in a Reuters poll predicted that gross domestic product in the world's fifth-largest economy will contract by 18.3% in the June quarter, compared to 3.1% growth in the previous quarter, the worst performance in at least eight years.
The same economists predict a contraction of 8.1% and 1.0% in the September and December quarters respectively, which would dash any hopes of an economic recovery this year.
India has reported over three and a half million cases of the novel coronavirus ¨C third behind only the United States and Brazil.
As the restrictions on transport, educational institutes and restaurants continue, along with weekly lockdowns in some states -- have hit manufacturing, services and retail sectors, while keeping millions of workers out of jobs.
Some economists are of the view that the fiscal year that began in April could see a contraction of nearly 10%, the worst performance since India won independence from British colonial rule in 1947.
Prime Minister Narendra Modi announced a $266 billion stimulus package in May, including credit guarantees on bank loans and free food grains to poor people, but consumer demand and manufacturing are yet to recover.