Corona to cost economy INR 40k cr daily
Care Ratings have estimated that if the 21-day long national lockdown leads to 80% production loss, the economy will take a hit of Rs 35,000-40,000 crore on a daily basis. This would lead to shaving off INR 6.3-7.2 lakh crore cumulatively. The forecast is based on the FY20 real GDP that is INR 140-150 lakh crore.
Of the 21 days lockout, 14 days spill over to FY21, therefore potential total loss will be in the region of Rs 6.3-7.2 lkh crore assuming 18 working days will be split across the two years,” the report states. the GDP loss can be in the region of Rs 4.2- Rs 4.8 lakh crore in FY21. This can potentially lead to a de-growth in GDP in Q1 provided there is no or low growth in the subsequent quarters.