With India topping the global infection list for the third consecutive day and more states imposing restrictions, SBI Research on Friday cut its growth forecast for the current financial year to 10.4 percent from 11 percent earlier.
India reported over 3.34 lakh fresh Covid-19 cases in the past 24 hours.


The report penned by the bank's chief economic advisor Soumya Kanti Ghosh also suggested that faster vaccination is cheaper on the economy than complete lockdowns, pointing out that the total cost of vaccination is much lower at 0.1 percent of GDP while the lockdowns has already cost 0.7 percent of GDP.
Now that states are free to buy vaccines directly from the manufacturers from May 1, our estimate for 13 large states shows that the cost of vaccines to inoculate will be only 0.1 percent of their collective GDP. This is significantly lower than the economic loss in GDP due to lockdown which is already at 0.7 percent of GDP, Ghosh said.

Drawing parallels with the 1918 Spanish Flu, he said this last deadly pandemic had more deaths in the later waves and, therefore, the focus should be vaccinated to avoid larger fatalities later.
Citing the injection to infection ratio, he said this shows that the country made rapid improvement this year but it is still below Israel, Chile, and Britain with only a paltry 1.2 percent of its population inoculated so far.
On the virus hotbeds, he said that among the 15 worst-affected districts (mostly urban and only two are rural), six are from Maharashtra. Overall, these districts contribute around 25 percent to the national GDP.
If we look at the rural districts worst affected, nine are from Maharashtra followed by three from Chhattisgarh, which accounts for around 3.3 percent of the national GDP.