If it takes a long time to get the vaccine of COVID-19, then it may affect the country's economy more. According to global banking company Bank of America Securities, if the vaccine took a long time to arrive, the Indian economy is projected to shrink by 7.5 percent in 2020-21. However, if the circumstances remain as expected, then the broking company has projected a four percent decline in the Indian economy.
Economists of the company have revised their estimates of the country's real gross domestic product (GDP) growth within a week. According to the report, due to the decline in economic activity in the country, the economy is expected to shrink by four percent even if the situation remains as expected. However, earlier many analysts have forecast the Indian economy to decline by five percent during the current financial year.
The report states that efforts are being made at several levels, both globally and domestically, to find the corona virus vaccine. But no deadline has yet been announced for the preparation of the vaccine.
"If the global economy has to wait for a year for the COVID-19 vaccine, the country's real GDP could fall by 7.5 percent," the report said.
Experts predicted that the country's economic conditions could improve The Reserve Bank of India may further cut policy rates by two percent in 2020-21.