India’s GDP To Contract By 7.7% In 2020-21

India's GDP is expected to contract by 7.7 per cent in the current fiscal year, according to the first advance estimates of economic growth released by the government on Thursday. This compares to a growth rate of 4.2 per cent in the last fiscal.

According to the estimates released by the National Statistical Office (NSO), Real GDP in 2020-21 is likely to attain a level of Rs 134.4 lakh crore, as against the provisional estimate of Rs 145.66 lakh crore in 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,” a statement issued by the Ministry of Statistics and Programme Implementation said.

Meanwhile, Nominal GDP for the current fiscal is likely to attain a level of Rs 194.82 lakh crore. This is in comparison to a provisional estimate of Rs 203.4 lakh crore in 2019-20. The nominal GDP growth rate is estimated to be -4.2 per cent.

To contain the spread of the COVID-19 pandemic, certain restrictions were imposed from 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 government said. It added that estimates are therefore likely to undergo sharp revisions in due course.