For the first quarter of FY21 as the lockdown remains in force from March 25 to now May 17 CEA K V Subramanian said the GDP will contract to meager 1-2%.And thereafter in the second quarter ending September some growth can be expected as migrant labor may return to job and industries resume operations and there is seen streamlining in logistics and supply chain.
Further as told to the agency, he said that job losses due to continuing uncertainty can be hard to predict.
Also on the sidelines he said that as the global sentiments remain weak there is a threat to exports from the country. "It is, however, time for Indian industries to revamp their strategies, adopt modern technologies and gear up to compete in global markets as many multinational corporations look towards shifting their manufacturing base out of China."
Meanwhile, as the government is yet to deliver the much-awaited economic package he iterated that India will need to evaluate its situation and not follow other economies such as the US and Britain.