India’s Gross Domestic Product (GDP) contracted 7.3 percent in 2020-21. The statistics come as per provisional National Income estimates released by the National Statistical Office on Monday.
This is marginally better than the 8 per cent contraction in the Indian economy projected earlier. However, GDP growth in 2019-20, prior to the COVID-19 pandemic, was 4 per cent.
Also, the fourth quarter of 2020-21 recorded a growth of 1.6 per cent in GDP. This is the second quarter of positive growth, after India had entered a technical recession in the first half of the year.
The Gross Value Added (GVA) in India’s economy shrank 6.2 per cent in 2020-21 as compared to a 4.1 per cent rise last year.
Contraction in GDP was 24.4 per cent in the April to June 2020 quarter, followed by a 7.4 per cent shrinkage in the second quarter. But it had returned to positive territory in the September to December quarter with a marginal 0.5 per cent growth.
Moreover, the data collection has also been impacted by the pandemic. Therefore, its estimates could undergo sharp revisions.
Furthermore, the statutory timelines for filing the requisite financial returns of fourth quarter have been extended by the Government. As a result, the private corporate sector estimates of industries are based on other indicators like IIP, GST, etc. This may have implications on subsequent revision of these estimates also.