India’s Gross Domestic Product (GDP) is expected to fall eight per cent in the financial year 2020-21. This was revealed in a new round of economic scenario survey by industry and commercial firm FICCI. The FCCI said the survey was conducted in January. The results were based on responses from top economists representing the industry, banking and financial services sectors.
Agriculture and related activities can register yes growth
According to the survey, agriculture and related activities could register a growth rate of 3.5 percent in fiscal year 2020-21. The FICCI said in the results of the survey that the agriculture sector has shown good resilience during the epidemic. Rabi’s good sowing, good monsoon, high reservoir level and strong growth in tractor sales indicate crashes in agriculture. However, the industry and service sectors most affected by the epidemic are expected to decline by 10 percent and 9.2 percent respectively in 2020-21.
The revival of the industrial sector is picking up pace
The survey said the revival of the industrial sector is accelerating, but growth is still not widespread. Usage activities intensified during the festive session after a decline during lockdown, but it is important to manage this. Sectors like tourism, hospitality, entertainment, education and health are still far from commonplace, requiring connectivity.
Positive reforms in the economy: PNB
Survey participants estimated that gross domestic product (GDP) could fall by 1.3% in the third quarter of 2020-21. Growth in the fourth quarter may be back on a positive path and GDP may rise 0.5 per cent.
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