India's GDP likely to contract by 7.7% in 2020-21, says govt
14 January 2021
India’s real gross domestic product (GDP), or GDP at constant 2011-12 prices, is expected to contract by 7.7 per cent in the financial year 2020-21, to about Rs1,34.40,000 crore, against the 4.2 per cent growth (at Rs1,45,66,000 crore) in the financial year 2019-20.
The growth in real GDP during 2020-21 is estimated at (-) 7.7 per cent as compared to the growth rate of 4.2 per cent in 2019-20.
Real gross value added (GVA) at basic prices is estimated to have contracted by 7.2 per cent to Rs1,23,39,000 crore in 2020-21, as against Rs1,33.01,000 crore in 2019-20.
Nominal GDP or GDP at current prices in the year 2020-21 is estimated to contract by 4.2 per cent, attaining a level of Rs1,94.82,000 crore, as against the provisional estimate of GDP of Rs2,03.40,000 crore for the year 2019-20.
Nominal GVA at basic prices is estimated to contract by 4.2 per cent to Rs1,75,77,000 crore in 2020-21, against Rs1,83.43,000 crore in 2019-20.
The provisional estimates are based on restricted data availability due to Covid-19 pandemic and the associated restrictions imposed from 25 March 2020. Though the restrictions have been gradually lifted, there has been an impact on the economic activities as well as on the data collection mechanisms, the official release stated.
Estimates are, therefore, likely to undergo sharp revisions as and when revised data become available ans as per the release calendar, the release added.