India’s GDP shrinks by 7.3% due to Corona, India’s worst performance in 40 years

The Indian economy has been the worst in four decades due to the corona epidemic. The growth rate of Indian GDP in the financial year 2021-21 is -7.3. The country’s GDP growth is 4 percent in fiscal year 2019-20. According to figures released by the Office for National Statistics (NSO), GDP rose 1.6 percent in the January-March quarter of 2021. This indicates that the country’s economy was on the road to recovery before the second wave of corona. The GDP growth rate for the December quarter was 0.5 percent and the growth rate for the September quarter was -7.5%. There was a historic decline in GDP in the first quarter due to the corona virus epidemic and it was -23.9%. However, there was a drop of -7.3 per cent in the entire financial year. The economy will see its biggest annual decline since 1980-81, but the biggest recession since 1952 will be recorded.

Quarterly GDP Growth

  • 1.6% for the fourth quarter
  • 0.5% for the third quarter
  • Second quarter (-) 7.5%
  • First Trimester (-) 23-9%
  • 2020-21- -7.3% in fiscal year

Lower than the estimate of the NSO

Gross Domestic Product (GDP) has risen by 3 per cent during the period January-March 2019-20. This data is provided by the National Statistical Office (NSO). According to the first advance estimate of national accounts released by the NSO in January this year, GDP will fall to 7.7 per cent by 2020-21. In its second revised estimate, the NSO forecasts an 8 per cent decline in 2020-21. China recorded a growth of 18.3 per cent in January-March 2021.
Production of the eight basic industries increased by 56.1 per cent

According to figures released by the government on Monday, the production of eight core industries increased by 56.1 per cent in April 2021 over the same period last year. The effect of this large jump on the growth rate is a less comparative annual basis. Natural gas, refinery products, steel, cement and electricity have increased during this period. Significantly, in April 2020, the eight major industries – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity – declined by 37.9 per cent.

Also Read: The largest increase in the growth of the eight core industries was 56.1 percent in April

The fiscal deficit is expected to reach 9.3 per cent of GDP in 2020-21

The fiscal deficit is estimated to be 9.3 per cent of gross domestic product (GDP) in fiscal year 2020-21. This is less than the 9.5 per cent revised estimate of the Ministry of Finance. The Comptroller General of Accounts (CGA), when submitting the central government’s revenue expenditure account for the financial year 2020-21, said revenue deficit was 7.42 per cent in the last financial year. The fiscal deficit is Rs 18,21,461 crore, which is 9.3 per cent of GDP. In its Budget presented in February 2020, the government has raised the fiscal deficit to Rs 7.96 lakh crore by 2020-21. Or 3.5 per cent of GDP. In the Budget for the Fiscal Year 2021-22, the fiscal deficit estimate for the previous fiscal year was 9.5 percent, or Rs 18,48,655 crore The fiscal deficit estimate is based on the Covid-19 epidemic and the deficit in revenue receipts.

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