Mumbai: The government said on Thursday that India’s real GDP is expected to grow by 7.7% in 2020-21 compared to a 4.2% increase in 2019-20.
The contraction is faster than the 7.5% decline predicted by the Reserve Bank of India. The GVA of agriculture and allied sector is expected to grow by 3.4% in 2020-21 as compared to 4.0% in 2019-20.
According to the first Advance Estimates of National Income released by the National Statistics Office (NSO) on Thursday, almost all sectors except agriculture had a contraction.
“Real GDP or GDP at Constant Prices (2011-12) in the year 2020-21 is likely to attain a level of Rs 134.40 lakh crore, as against the Provisional Estimate of GDP for the year 2019-20 of Rs 145.66 lakh crore… 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,” it said.
Real GDP is expected to contract by 7.7% in 2020-21 as compared to 4.2% growth in 2019-20: Ministry of Statistics & Programme Implementation pic.twitter.com/qRsF26pm1O
— ANI (@ANI) January 7, 2021
GDP is calculated for the first 7 months of the financial year based on a host of indicators such as the Index of Industrial Production (IIP), corporate income ending in September 2020, agricultural production, accounts of central and state governments, other indicators such as rail passenger and cargo income, passengers and civil aviation and seaports, sales of commercial vehicles, goods available for the first 8 months of the financial year.