India Growth Forecast Cut Again at Citi as Virus Cases Surge

Citigroup Inc. sharply lowered its forecast for India’s economy as the coronavirus pandemic shows no sign of slowing.

The nation’s gross domestic product will contract 6% in the fiscal year to March 2021, steeper than Citi’s previous estimate for a 3.5% decline, its analysts led by Samiran Chakraborty, chief India economist in Mumbai, wrote in a report to clients. The revision is largely due to a cut to the fiscal first-quarter forecast -- with the economy seen slumping 21% during the period against 16% estimated earlier.