The National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation has released the estimates of Gross Domestic Product (GDP) for the first quarter (April-June) for the Fiscal Year 2020-21.
As per the report, India's GDP has contracted by 24% for the first quarter (April-June). The shrink in the economy is mainly due to the COVID-19 pandemic and the subsequent lockdown. In simple words, the total value of goods and services produced in the first quarter in India is 24% less than the total value of goods and services produced in the first quarter in the last Fiscal Year, i.e., 2019-20.
IMF: The world will face the worst recession as the global economy will contract by 3%
As per K.V. Subramanian, the Chief Economic Adviser (CEA) stated that the first-quarter economic performance was driven primarily due to an exogenous shock that has been felt globally. He further stated that the World Economic Outlook has highlighted several countries around the globe where GDP per capita is expected to decrease the most since 1870, which is what the country is going through.
Percentage change in the main indicators used in the estimation
Source: Ministry of Statistics and Programme Implementation
Statement 1: Quarterly Estimates of GVA at Basic Prices in Q1 (April-June) of 2020-21 (at 2011-12 Prices)
Source: Ministry of Statistics and Programme Implementation
Statement 2: Quarterly Estimates of Expenditures on GDP in Q1 (April-June) of 2020-21 (at 2011-12 Prices)
Source: Ministry of Statistics and Programme Implementation
Statement 3: Quarterly Estimates of GVA at Basic Prices in Q1 (April-June) of 2020-21 (at Current Prices)
Source: Ministry of Statistics and Programme Implementation
Statement 4: Quarterly Estimates of Expenditures on GDP in Q1 (April-June) of 2020-21 (at Current Prices)
Source: Ministry of Statistics and Programme Implementation
Key Pointers
1- The GDP at Constant (2011-12) Prices in Q1 of the Fiscal Year 2020-21 is estimated at Rs. 26.90 lakh crore against Rs. 35.35 lakh crore in Q1 of the Financial Year 2019-20. The GDP has contracted by 23.9% for the first quarter of 2020-21 compared to the 5.2% growth in the same quarter of FY 2019-20.
2- Quarterly GVA at Basic Price at Constant (2011-12) Prices for the first quarter of FY 2020-21 is estimated at Rs. 25.53 lakh crore, as against Rs. 33.08 lakh crore in the same quarter of 2019-20, showing a contraction of 22.8%.
3- GDP at Current Prices for Q1 (2020-21) is estimated at Rs. 38.08 lakh crore against Rs. 49.18 lakh crore in the same quarter for the FY 2019-20, showing a contraction of 22.6% as compared to 8.1% growth in the same quarter for the Fiscal Year 2019-20.
4- GVA at Basic Price at Current Prices in the first quarter (2020-21) is estimated at Rs. 35.66 lakh crore against Rs. 44.89 lakh crore in the same quarter for the FY 2019-20, showing a contraction of 20.6%.
5- In the fourth quarter of the Fiscal Year 2019-20, the Gross Domestic Product or GDP stood at 3.1% while for the Fiscal Year 2018-19, the economy grew by 5.2% in the fourth quarter.
6- The economy is experiencing a V-shaped recovery after the relaxation in the lockdown.
Earlier, the Reserve Bank of India has stated that the shrink in the economy is likely to continue as the upticks witnessed in the months of May and June have appeared to lose the strength following the reimposition of lockdown in some parts of the country to the contain the spread of the coronavirus disease.
If the experts are to be believed, the GDP may further worsen and the economy may contract by 7% for the Fiscal Year 2020-21. It is interesting to note that since the 1990s, the GDP has grown by an average of 7% every year but due to the pandemic, it has contracted by 7%.
The Government of India also introduced the Aatma Nirbhar Bharat Abhiyan to ease the financial distress caused by the COVID-19 pandemic.
.jpg "What is the National Strategy for Financial Education (NSFE) released by RBI?")
Comments
All Comments (0)
Join the conversation