A month-long national lockdown may dent India's GDP by 2%: BofAS
by Nidhi Bhati
Analysts at Bank of America Securities (BofAS) have cautioned that a month-long national lockdown to stop the surge in coronavirus cases can dent India’s GDP by up to two per cent. The lockdown will also aggravate fiscal risks, it added. Given the high economic cost, analysts expect the Center and state governments to try to contain the spread with the tightening of Covid-19 regulations, night curfews and localized lockdowns. In its base case, the BofAS continues to see a nine per cent jump in the real gross value added growth for 2021-22. However, it warned that there can be a three percentage point impact to the estimate in case of a national lockdown.