Contraction in GDP of India in 2020-21: World Bank

Recently, the World Bank has released its South Asia Economic Focus report which estimated that India’s Gross Domestic Product (GDP) can contract by 9.6% for the year 2020-21.
It is due to the impact of the national lockdown against the outbreak of the Covid-19 pandemic. Households and small urban service firms experienced income shock.
The manufacturing and exporting industries may face reduced growth.
The construction sector may also face slowdown.
These disruptions to jobs will increase the poverty rate. 2020 rates may go back to levels in 2016.
The economic slowdown could lead to rising loan non-repayment and risk aversion impacting the financial markets also.
However, India’s growth is estimated to rebound to 5.4% in 2021-22.