Corona effect: In 2020, India's fuel demand will fall by 11.5%

New delhi date. 19 September 2020, Saturday

Fuel demand in India is expected to fall by 11.5 per cent in 2020, according to global agency Fitch Solutions. Fitch has raised its forecast for declining fuel demand in India as the country's economic outlook worsens.

According to an economist at Fitch Solutions, India's real GDP will shrink by 8.6 per cent in 2020-21. It had earlier projected a 4.5 per cent slowdown in the economy.

"Fuel demand has been broadly affected," Fitch Solutions said in a report released on Saturday. Along with consumer consumption, fuel demand has also declined sharply at the industrial level. Fitch Solutions had earlier projected a 9.4 per cent drop in fuel demand in 2020.

Fitch Solutions estimates that the Indian economy will grow by 5% in 2021 and 2022. He further said that at that time the Corona epidemic would be under control and the economy would show normal economic growth.

In the first quarter of the current financial year, India's total economic growth rate fell to a historic low of 23.9 per cent. The corona virus epidemic does not appear to be stopping and the number of patients is increasing every day, the report said.

Fitch Solutions said the high unemployment rate and the Corona virus have affected consumer spending.