Given the rising urbanization in Asia's third largest economy, there will be 90 million additional workers in search of non-farm jobs by 2030 and hence the country will have to significantly raise the rate of job creation, McKinsey Global Institute said in the report.
According to the report, India's GDP could contract between 3-9 percent in 2020-21 fiscal year (April 2020-March 2021), depending on the policy response by the government and effectively curbing the virus spread.
India ranks third after the United States and Brazil for the total number of COVID-19 cases with 725,991 active cases and 60,472 deaths reported so far.
The report, which comes at a time when 19 million jobs have been lost since April, warns that the lockdown-led economic disruption could put the country's banking system under stress, leading to a rise in bad loans by 7-14 percentage points in 2020-21 FY.
Several agencies have predicted India's GDP to remain in the negative territory for the coming quarters of the current fiscal year after reporting a mere 4.2 percent growth in 2019-20.
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