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New Delhi 2 days ago
According to government figures, GDP is expected to decline by 7.7% in the current fiscal year 2020-2021. Last year the GDP was 4.2%. The economy has slowed this year due to Kovid, according to the NSO. Previously, it was said that all sectors except agriculture would be reduced. Annual GDP is projected to be Rs 134.40 lakh crore in 2020-2021.
The growth rate of the country’s economy is expected to be less than zero at -7.7 percent in the current fiscal year. The main reason for this is the decline in economic activity due to the crown. For the first time since 1979-80, the growth rate was negative. In 1979-80, the growth rate was -5.2 percent. The country’s growth rate was 4.2% last year, down from -23.9% in the first quarter. The situation improved in the second quarter and now stands at -7.5%. This statistic is important since the next budget will be based on this figure.
3.4% growth forecast in agriculture
According to preliminary estimates for the year 2020-2021 published by the National Statistical Organization, the growth of the second sector of the economy is negative. Agriculture is the only sector that has made a good contribution to GDP growth in the current fiscal year. The agricultural growth rate could be 3.4 percent this year. However, its growth was 4 percent in the last fiscal year.
According to the ONS, the size of the construction sector could decrease by 12.6% in 2020-2021. The size of shops, hotels, transport and communications can be reduced by 21 percent. The size of the manufacturing sector could decline 9.4%. The entire service sector is expected to decline 8.8%.
Nominal GDP will decline by 4.2%
Gross value added (GVA) is expected to decline by 7.2%. According to the GVA, the economic activity of a sector contributes to the GDP. The government estimates a decline in nominal GDP of 4.2 percent. The annual budget is expressed in nominal GDP. Real GDP figures are calculated by subtracting the inflation rate from nominal GDP.