India's growth will drop to 0.5 per cent this year, says IMF chief economist Gita Gopinath

WION New Delhi Apr 22, 2020, 08.12 PM(IST)

Gita Gopinath (File Image) Photograph:( AFP )

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RBI recently announced multiple relief measures but banks are being pushed to lend more.

There is more bad news for the Indian economy. Earlier, economists had predicted that India might register some growth. Most projections say less than two per cent.  But, the International Monetary Fund (IMF) chief economist Gita Gopinath in an exclusive interview to WION said that India's growth will drop to 0.5 per cent this year.

India's projected GDP growth is at 1.9 per cent while China's 1.2 per cent. The IMF has already said that this phase will be worst than the great depression. The great depression was the worst worldwide economic downturn. It lasted for 10 years, starting in 1929. Now the world stares at something worst.

Meanwhile, the Indian government is mulling a second economic stimulus.

Government think tank Niti Aayong says a package equal to five per cent of India's GDP, which is around 9.5 lakh crore, is needed.

RBI recently announced multiple relief measures and banks are also being pushed to lend more.

According to Gopinath moves by the RBI will help the economy.

Now all eyes are on New Delhi as reports hint at second stimulus package.