New Delhi: The Indian economy contracted by a whopping 7.3 per cent in 2020-21 against 4.0 per cent growth in 2019-20.
According to the data released by the National Statistical Office (NSO) of the Union Ministry of Statistics and Programme Implementation, the Gross Domestic Product (GDP) came down from nearly Rs 145 lakh crore in 2019-20 to Rs 135 lakh crore during the previous financial year.
"Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2020-21 is now estimated to attain a level of ₹135.13 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," said the NSO said in a statement on Monday.
The growth in GDP during 2020-21 is estimated at -7.3 percent as compared to 4.0 percent in 2019-20, the statement added.
GDP is the total volume of goods and services produced in the country and it is a major indicator of the state of the economy.
Quarterly growth improves
While the overall financial year witnessed a de-growth, the fourth quarter of the previous financial year had showed improved performance.
Compared to 0.5 per cent growth in the previous October-December quarter of 2020-21, the economy grew by 1.6 per cent in the January-March quarter.
China has recorded 18.3 per cent growth in January-March 2021.
Impact of Covid-19 pandemic on economy
Due to Covid-19-induced restrictions on business activities, the economy registered de-growth in the first six months of the previous financial year and as a result Indian economy was pushed into its first ever technical recession.
According to the revised estimates released on Monday, GDP contracted by 24.4 per cent and 7.4 per cent in the first (April-June) and second (July-September) quarter respectively.
However, there was some respite in the October-December quarter as the GDP witnessed 0.5 per cent positive growth followed by 1.6 per cent growth in the January-March quarter.
Economy’s worst performance since 1980
This is the first full-year contraction in the Indian economy in the last four decades since 1979-80 when GDP had shrunk by 5.2 per cent, said news agency PTI in a report.
The GDP expanded by 8.2 per cent in 2015-16 before slipping to around 7 per cent in 2016-17 and 2017-18 and 6.1 per cent in 2018-19.
The following year, there was a further slowdown in economic activities. As a result, the GDP growth came down to a scanty 4 per cent in 2019-20.
(With PTI Inputs)
