The global brokerage firm Barclays has lowered India's GDP forecast for the Financial Year 2021-22 from 11% to 10%.
As per the firm's report, if the ongoing lockdowns in several states continue till June, it can incur a loss of $38.4Bn for the Indian government.
The firm further informed that if the restrictions continue till August, it will bring down the GDP forecast to 8.8%.
The country's economy is expected to contract by 7.6% in the Financial Year 2021.
"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% to 10.0% to reflect this uncertainty," the firm's analysis said.