Overall, the GDP growth current fiscal (April 2020 to March 2021) will be in negative zone or near zero, she said, adding the growth will revive from the next fiscal.
Swamy was in conversation with Prabhu Chawla, Editorial Director, The New Indian Express, and senior journalist and author Kaveree Bamzai in TNIE Expressions.
Modi should listen patiently to former Prime Minister Manmohan Singh to revive the economy, he suggested.
The senior Congress leader also suggested some measures to raise money which include relaxing FRBM norms, accelerating disinvestment and borrowing money from global banks.
The topic of the meeting is 'Final discussion on GDP growth, tax buoyancy of the Centre and the States, GST compensation, revenue deficit grant and fiscal consolidation'.
The situation could be exacerbated by the fact that states have been allowed to borrow more to make up for the shortfall in GST revenue.
'This pandemic has led to enormous economic consequences by way of lockdown which brought serious dislocation both on demand and supply sides,' Singh said at an AIMA event here.
In May, the Reserve Bank had said the GDP growth during 2020-21 is likely to remain in the negative territory.
'Under these assumptions our forecast for GDP growth is now (-) 6.4 per cent for FY21 with GVA (de)growth estimated to be around (-) 6.1 per cent,' Care Ratings said in a report.
In its report on losses in the Asia-Pacific region, S&P projected that the region’s economy is likely to shrink by 1.3 per cent in 2020, but grow by 6.9 per cent in 2021.
India’s economy is going hell for leather with the IMF projecting FY21 GDP growth to contract by 4.5%.
'Remember, this is pre-lockdown. Of the 91 days of Q4, lockdown applied to only 7 days,' the former finance minister said.
According to data by NSO, the GDP had expanded by 5.7 per cent in the corresponding quarter of 2018-19.
This is for the first time since 1990 that China is doing away with setting an annual economic growth target.
'We now expect India's growth to register a real GDP contraction for the fiscal year ending in March 2021, from our earlier projection of zero growth,' it said in a research note.