Indian economy at slower pace in March

India’s gross domestic product data due today is expected to reveal weak results, indicating that the economy is at its slowest pacing in at least two years in March. Dampened expectations were mainly from struggling consumer demand and private investment due to the COVID-19 pandemic.

The economy is expected to advance by 2.1% in the March quarter, way lower than the 4.7% outlook in December. A group of economists placed their economic forecasts between 4.5% and -1.5%, expecting that the fiscal year that started in April will witness the sharpest downturn in four decades.

“Economic activity will face ongoing disruption over the next year as the country transitions to a post-COVID-19 world,” S&P Global Ratings said on Thursday. In addition to this, the rating agency slashed its 2020- 2021 forecast to a 5% contraction rate.

The damage brought by the coronavirus pandemic would become more evident in June as Goldman Sachs predicted a 4.5% downturn from a year earlier.