Indian Economy to Contract by 10.3% in 2020, Likely to Bounce Back with 8.8% Growth in 2021: IMF

The IMF in its report said that revisions to the forecast are particularly large for India, where Gross Domestic Product (GDP) contracted much more severely than expected in the second quarter. “As a result, the economy is projected to contract by 10.3% in 2020, before rebounding by 8.8% in 2021,” it said. In 2019, India’s growth rate was 4.2%.

According to the IMF, India is among those likely to suffer the greatest damage from global warming, reflecting its initially high temperatures. For India, the net gains from climate change mitigation-relative to inaction-would be up to 60%-80% of GDP by 2100. While estimates of losses from climate change are somewhat smaller for colder regions (for example, Europe, North America, and east Asia), these are likely underestimations as they do not include a number of damages (for example, rise in sea levels, natural disasters, damage to infrastructure from thawing of permafrost in Russia) and negative global spillovers from large economic disruptions in other parts of the world.