Kumar Mangalam Birla Predicts 'Severe' GDP Contraction

Chairman of the Birla group, Kumar Mangalam Birla, has said in a letter to shareholders that India's GDP is likely to contract as a result of the covid lockdown. He said, "It is estimated that about 80% of India's GDP originates from districts which were classified under the red and orange zones during the lockdown, where economic activity remained severely constrained. Correspondingly, India's GDP is likely to contract in FY21, which would be the first such instance in over four decades. The contraction is estimated to be particularly severe during Q1."