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India's FY21 GDP to contract 7.7 percent, says govt in first advance estimate

By Rajan Nath -- January 07, 2021 7:19 pm -- Updated:January 07, 2021 7:23 pm

India GDP 2020-21 Estimate: The Indian economy may shrink by 7.7 percent during the financial year 2020-21 (FY21) as compared to 4.2 percent growth in FY20, said National Statistical Office (NSO) in its advance GDP estimates of National Income, released on Thursday.

Real GDP in the year 2020-21 is likely to attain a level of Rs 134.40 lakh crore as against the Provisional Estimate of GDP for the year 2019-20 of Rs 145.66 lakh crore, released on May 31, 2020.

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India GDP 2020-21 Estimate: Indian economy may shrink by 7.7 percent during the financial year 2020-21 (FY21).

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, the government said, adding that the Real GVA at Basic Prices is estimated at Rs 123.39 lakh crore in 2020-21, as against Rs 133.01 lakh crore in 2019-20, showing a contraction of 7.2 percent.

The nominal GDP or GDP at Current Prices in the year 2020-21 is likely to attain a level of Rs 194.82 lakh crore, as against the Provisional Estimate of GDP for the year 2019-20 of Rs 203.40 lakh crore, released on May 31, 2020, the NSO stated in its reports of India GDP 2020-21 Estimate.

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India GDP 2020-21 Estimate: Indian economy may shrink by 7.7 percent during the financial year 2020-21 (FY21).

The growth in nominal GDP during 2020-21 is estimated at -4.2 per cent. Nominal GVA at Basic Prices is estimated at Rs 175.77 lakh crore in 2020-21, as against Rs 183.43 lakh crore in 2019-20, showing a contraction of 4.2 percent.

In the wake of Covid-19 pandemic, certain restrictions were imposed from March 25, 2020. Though restrictions have been lifted gradually, there has been an impact on the economic activities as well as on the data collection mechanisms.

India GDP 2020-21 Estimate: Indian economy may shrink by 7.7 percent during the financial year 2020-21 (FY21).

The data challenges in the case of other underlying macro-economic indicators like IIP and CPI, used in the estimation of National Accounts aggregates will also have implications on these estimates.

Further, the projected indices may significantly vary from the actual indices which in turn will depend on the pandemic led economic situation prevalent during those months and specific measures, if any, taken by the government.

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-PTC News

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