The Indian economy is projected to contract 7.7 percent in 2020-21, with growth of 4.2 percent in the previous fiscal year, mainly due to the impact of the COVID-19 epidemic.
According to the first advanced estimates of national income released by the National Statistics Office (NSO) on Thursday, almost all sectors except agriculture had a contraction.
“Real GDP is expected to achieve a level of Rs 134.40 lakh crore at constant prices (2011-12) in the year 2020-21, while the provisional estimate of GDP for the year 2019-20 is Rs 145.66 lakh crore. It is projected to grow at -7.7 percent in real GDP during 2020-21 compared to a growth rate of 4.2 percent in 2019-20.
The manufacturing sector is expected to witness a decline of 9.4 percent in the current fiscal year, while the year-over-year period growth was around 0.03 percent.
The NSO forecasts significant contractions in ‘mining and quarrying’ and ‘trade, hotels, transport, communication and broadcasting services’.
The agriculture sector is projected to grow by 3.4 percent in 2020-21. However, this would be less than the 4 percent increase recorded in 2019-20.
The economy contracted 23.9 percent in the first quarter and 7.5 percent in the second quarter.
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