Home Latest News Local lockdowns to cost India $38 billion until June: Barclays

Local lockdowns to cost India $38 billion until June: Barclays

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Blaming the slow pace of vaccinations and uncertainty around the number of those infected and dead in the second COVID-19 wave, global brokerage firm Barclays cut India’s FY22 GDP growth estimate to 10 per cent from earlier 11 per cent, as per a PTI report.

If the ongoing localised lockdowns continue till June, it will lead to economic losses of USD 38.4 billion, it said.

“As India’s second COVID-19 wave continues, there is growing uncertainty around the number of cases and fatalities. Slowing vaccinations are also hurting India’s recovery prospects. We lower our FY 2021-22 GDP growth forecast by 1 per cent to 10.0 per cent to reflect this uncertainty,” PTI said, quoting analysts at Barclays.

India is in the “unwelcome position” of being the centre of the global pandemic now, with infections rising at over 4 lakh a day, it said, pointing out that the geographical area of infections is widening with positivity rates surging in many states.

“At the same time, India’s vaccination programme has slowed, weighed down by rising supply constraints and logistical challenges,” it said, adding that the move to liberalise vaccinations is unlikely to have any impact in the short term.