India's economy braces for biggest contraction since 1952.

Byline: S. Kamal Hayder Kazmi

India's economy is set for its biggest annual contraction in records going back to 1952 as the rapid spread of coronavirus cases and measures to contain them hurt businesses and households.

Gross domestic product will shrink 7.7 percent in the financial year ending March 2021, the statistics ministry said in its first advance estimate published on Thursday. That's steeper than a 7.5 percent drop forecast by the Reserve Bank of India, as well as economists surveyed by Bloomberg.

The estimates may undergo sharp revisions due to disruptions caused by steps to contain the pandemic, said the statistics office, which had suspended data collection coinciding with a nationwide lockdown.

The rupee declined 0.3 percent at close in Mumbai on Thursday before the data was published, while sovereign bonds were little changed.

Despite one of the strictest coronavirus lockdowns, India is now home to the world's second-highest...