Indian economy contracts by 6.6% in 2020-21: NSO data

This is against the earlier estimate of 7.3% decline, showing that the COVID-19 pandemic hit economy did not perform as badly as was initially worked out.
Representative image of currency
Representative image of currency
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The Indian economy contracted by 6.6% in 2020-21 as against the earlier estimate of 7.3% decline, showing that the COVID-19 pandemic hit economy did not perform as badly as was initially worked out. As per the provisional estimates released in May 2021, the GDP had contracted by 7.3% during 2020-21 on account of the outbreak of COVID-19 and subsequent nationwide lockdown to contain the pandemic.

The National Statistical Office has also revised downward the real GDP growth number for 2019-20 to 3.7% as against the earlier estimate of 4%. "Real GDP or GDP at constant (2011-12) prices for the years 2020-21 and 2019-20 stands at Rs 135.58 lakh crore and Rs 145.16 lakh crore, respectively, showing a contraction of 6.6% during 2020-21 as compared to growth of 3.7% during 2019-20," National Statistical Office said in the revised national account data released on Monday, January 31.

Under the first revision released in January 2021, real GDP or GDP at constant (2011-12) prices for the years 2019-20 was pegged at Rs 145.69 lakh crore, showing growth of 4% during 2019-20. "In terms of real GVA (gross value added), i.e., GVA at constant (2011-12) basic prices, there has been a contraction of 4.8% in 2020-21, as against growth of 3.8% in 2019-20," NSO stated.

During 2020-21, the growth rates of the primary sector (comprising agriculture, forestry, fishing and mining & quarrying), secondary sector (comprising manufacturing, electricity, gas, water supply & other utility services, and construction) and tertiary sector (services) have been estimated as 1.6%, (-)2.8% and (-) 7.8% as against a growth of 1.9%, (-) 6.8% and (-) 8.4%, respectively, in the previous year.

Nominal Net National Income (NNI) or NNI at current prices for the year 2020-21 stands at Rs 171.94 lakh crore as against Rs 177.17 lakh crore in 2019-20, showing a contraction of 2.9% during 2020-21 as against growth of 6% in the previous year, it stated. Per Capita Income i.e. Per Capita Net National Income at current prices is estimated at Rs 1,32,115 and Rs 1,26,855 respectively for the years 2019-20 and 2020-21, it stated.

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