Mumbai: The Reserve Bank on India (RBI) said India's gross domestic product (GDP) growth will be in negative territory in 2020-21 as the outbreak of coronavirus has disrupted economic activities.
In a televised address, RBI Governor Shaktikanta Das said the global economy is heading into recession.
He also said inflation outlook is "highly uncertain".
"Domestic economic activity has been impacted severely by the two-month lockdown," he said and added that the top-six industrialised states that account for 60 per cent of India's industrial output are largely in red and orange zones.
He said high-frequency indicators point to collapse in demand, and there is a plunge in demand for electricity and petroleum productions.
The biggest blow is to private consumption that accounts for 60 per cent of domestic demand, the governor said.
Das said the combined impact of demand compression and supply disruption will depress economic activity in the first half of the current fiscal.
Asianet.in/News Desk: Asianet Online