The current Coronavirus pandemic has had an impact on India’s GDP estimates for the January-March quarter, as well as the financial year 2020-21, with growth decreasing by 7.3 per cent in FY21. The fourth-quarter figures showed a 1.6 per cent increase.
The GDP grew at a dismal 4% in 2019-20, an 11-year low, owing primarily to a decrease in secondary sectors like manufacturing and construction.
India’s GDP shrank by 24.38 per cent in the first quarter of 2020-21, owing primarily to the Covid-19 epidemic. On Monday evening, the Central Statistics Office (CSO) revealed the GDP figures for the January-March quarter for the fiscal year 2020-21. India’s economy contracted during the first half of FY21 as a result of the pandemic and the statewide lockdown imposed to stop the spread of illnesses last year, before rebounding to positive territory in the October-December quarter with 0.4 per cent growth. The economy contracted by 24.38 per cent in April-June but improved to a 7.5 per cent decline in July-September.
The CSO forecasted an 8% decrease in GDP in FY21, meaning a 1.1 percent contraction in the March quarter. In the meantime, the Reserve Bank of India forecasted a 7.5% contraction in FY21. Most analysts, on the other hand, projected the economy to rebound faster than expected in the March quarter, and predicted that the FY21 contraction would be smaller than the CSO’s forecast of 8%.