Economy / India's real GDP expected to contract by 7.7% in 2020-21: Govt

India's real GDP is expected to contract by 7.7% in 2020-21 as compared to 4.2% growth in 2019-20, the government said on Thursday. The contraction is steeper than a 7.5% drop forecasted by the Reserve Bank of India. The GVA of agriculture and allied sector is expected to grow at 3.4% in 2020-21 as compared to 4.0% in 2019-20.

Vikrant Shekhawat : Jan 07, 2021, 07:20 PM
New Delhi: India’s real GDP is estimated to contract by 7.7% in 2020-21, as compared to a growth rate of 4.2% in 2019-20. Real GVA (Gross Valued added) at basic prices is estimated at ₹123.39 lakh crore in 2020-21, as against ₹133.01 lakh crore in 2019-20, showing a 7.2% contraction, as per advance estimates by the National Statisical Office.

Only two sectors estimated to record positive growth in GVA this year: Agriculture (3.4%) and Electricity, Gas, Water Supply & Other Utility services (2.7%)

The sharpest decline in 2020-21 is expected in Trade, Hotels, Transport, Communication and Services related to broadcasting (-21.4%), followed by Construction (-12.6%), Mining and quarrying (-12.4%), Manufacturing (-9.4%), Public administration, defence and other services (-3.7%) and Financial, Real Estate and Professional Services (-0.8%), as per the advanced estimates.