India’s GDP to Contract 8% in 2020-21; Grows 0.4% in Oct-Dec Quarter

New Delhi: India’s GDP growth during 2020-21 is estimated to contract by 8% compared with 4% in 2019-20, according to the second advanced estimates projected by the National Statistical Office (NSO). In its first advance estimate released in January, the NSO had projected a contraction of 7.7% in the ongoing fiscal.

“ Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2020-21 is estimated to attain a level of ₹ 134.09 lakh crore, as against the First Revised Estimate of GDP for the year 2019-20 of ₹ 145.69 lakh crore, released on 29th January 2021. The growth in GDP during 2020-21 is estimated at -8.0 percent as compared to 4.0 percent in 2019-20,” an official release said.

However, in a positive development, the economy,  after contracting for two quarters in a row, grew by 0.4% in the October-December quarter amid coronavirus pandemic, signaling emergence from recession.

The economy had shrunk by an unprecedented 24.4% in the first quarter this fiscal following the coronavirus pandemic and resultant lockdowns. In the second quarter, the GDP declined 7.3% due to a perk up in economic activities, reports PTI.

In another indication of the overall economic slump, per capita income has shown a decline of 4.8% during 2020-21.

“ The Per Capita Income in real terms (at 2011-12 Prices) during 2020-21 is estimated to attain a level of ₹ 85,929 as compared to ₹ 94,566 in the year 2019-20, giving a growth of -9.1 percent during 2019-20, as against 2.5 per cent in the previous year. The Per Capita Income at current prices during 2020-21 is estimated to be ₹ 127,768, showing a decline of 4.8 percent, as compared to ₹ 134,186 during 2019-20,” official data said.

(with inputs from PTI)