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 - third behind only the United States and Brazil. Continuing restrictions on transport, educational institutions and restaurants - and weekly lockdowns in some states - have hit manufacturing, services and retail sales, while keeping millions of workers out of jobs. "Timely indicators show that the post-lockdown recovery is now stalling, underscoring the long and difficult road ahead for India's economy," said Shah, who is predicting a 15% contraction in June quarter. Policymakers said federal and state governments are unable to increase spending, following a more than 40% fall in tax receipts in the June quarter.

Source: Dhaka Tribune August 31, 2020 01:52 UTC