India’s GDP could shrink 8% in FY21 on Covid blow: Second Advance Estimate

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The growth in India’s real GDP during 2020-21 is estimated at -8 per cent as compared to the growth rate of 4.0 per cent in 2019-20, said government on Friday as part of its second advance estimates of the economic growth.

Real GDP or GDP at Constant Prices (2011-12) in the year 2020-21 is likely to attain a level of Rs 134.09 trillion, as against the First Revised Estimate of GDP for the year 2019-20 of Rs 145.66 trillion, according to the data released on Feb 26, 2021.

Meanwhile, the third quarter GDP data released on Friday showed that the came out of the recession and expanded 0.4 by per cent.

GDP at Current Prices in the year 2020-21 is estimated to attain a level of Rs 195.86 trillion, as against Rs 203.51 trillion in 2019-20, showing a growth rate of -3.8 percent.

Agriculture sector is estimated to see a growth of 3 per cent in 2020-21. However, it will be lower than 4.3 per cent growth recorded in 2019-20.

As per the second advance estimates released, manufacturing sector is estimated to contract 8.4 per cent during FY21, while electricity is likely to grow at 1.8 per cent. Among services sectors, trade, hotel, transport are projected to contract 18 per cent.

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