New Delhi: A research report of the State Bank of India (SBI) said that GDP growth is projected to be minus 7.4 in FY 2020-21 due to better recovery, while according to earlier estimates, this figure was negative 10.9%. This report of SBI also stated that it will take seven quarters from the fourth quarter of FY 2020-21 to reach the GDP to the level it was before the epidemic.

SBI's research report 'EcoRap' said that after the revised forecasts of RBI and markets after the second quarter, we now expect GDP to fall by 7.4% for the whole year (FY 2020-21). Whereas before the report of EcoRAP, it was estimated to be minus 10.9%. The report said that the revised GDP estimate is based on SBI's 'Nowcasting Model', which includes 41 high-frequency indicators related to industrial activities, service activities and the global economy.

The report said that based on this model, GDP growth in the third quarter could be around 0.1%. It said that 41 high frequency leading indicators are showing 58% growth in the third quarter. Earlier on Tuesday, the Global Rating Agency (S&P) raised India's growth forecast for the current financial year from minus 9% to minus 7.7%. The rating agency has changed its estimate due to increasing demand in the economy and decrease in cases of Covid-19.

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