NEW DELHI, Oct. 16 -- The World Bank on Thursday, 8 October, said India's gross domestic product (GDP) will contract 9.6% this fiscal, in a sharp cut to its June forecast of a 3.2% decline, reflecting the impact of the nationwide lockdown and the income shock experienced by households and small companies. The Bank expects the Indian economy to rebound in FY22 with a 5.4% growth.
"However, there is substantial uncertainty related to the course and duration of the pandemic; the speed at which households and firm behaviour will adjust to the lifting of lockdowns; and a possible new round of countercyclical fiscal policy," the Bank said in its latest South Asia Economic Focus report.
While the government has signalled that it is prepared to s...