Vikrant Shekhawat : Jun 01, 2021, 07:04 AM
Due to the Corona epidemic, GDP growth in the financial year (2019-20) was 4.18%. In this financial year, only the month of March-2020 was affected by Corona. But in the financial year (2020-21), the corona epidemic caused a huge hit to the Indian economy. The epidemic had its greatest impact on the first quarter of FY21.
GDP growth rate 1.6 percent in the fourth quarterActually, there was complete lockdown in the country during the first quarter (April-June) of FY21. All economic activities were closed. This led to a historic 23.9 percent decline in GDP in the first quarter. After that, the country's GDP (GDP) in the second quarter was -7.5 percent. Whereas in December quarter there was a marginal increase of 0.4 per cent. And now the GDP growth rate in the fourth quarter was 1.6 percent.Economy improvement quarter-on-quarterAccording to the data released by the National Statistical Office (NSO), the Indian economy is improving quarter-on-quarter. But due to the steep fall in the first and second quarter, the GDP growth rate for the entire financial year (2020-21) was -7.3 per cent. This figure did not compete with the Indian economy for the last nearly 41 years.
41-year-old record brokenEarlier, in 1979-80, the growth rate of the Indian economy was -5.24 per cent, 41 years ago. At that time there was a drought in the country. At the same time, crude oil prices had doubled. But in the fiscal year 2020-21, due to the corona epidemic, there was such a decline in GDP that the record for the last 41 years was broken.Fall in GDP is lower than anticipatedAccording to the data of the National Statistical Office, the GDP growth rate for the entire financial year i.e. FY21 was -7.3%. Whereas the central government itself in February this year had estimated a decline of 8 percent in GDP during the entire financial year 2020-21. That is, better GDP figures have come out than the government's estimates.Fiscal deficit lower than government estimateAt the same time, the fiscal deficit has also been lower than the government's estimate, which is good news for the country's economy. The growth rate of the Indian economy has been affected by the second wave of Corona, due to which the expenditure of the government has increased. Despite this, the fiscal deficit has remained at 9.3%, lower than the 9.5% fixed by the government. The fiscal deficit stood at Rs 18.21 lakh crore, which is 9.3 per cent of GDP.
Improvement in industry growth rateAt the same time, the growth rate of eight core industries has been 56.1% in April. In April-21, the coal sector grew at a rate of 9.5%. On the other hand, the crude oil sector recorded a decline of 2.1%. Natural gas grew 25% and the refinery grew at 30.9%. Fertilizer rose 1.7%, steel by 400% and cement by 548.8%. At the same time, the electricity sector grew at a rate of 38.7%.Continuous tremors on the GDP frontIn the last five years, the government has suffered a continuous setback on the GDP front. In the year 2015-16 (8.00%), in 2016-17 (8.26%), in 2017-18 (7.04%), in 2018-19 (6.12%), in 2019-20 ( 4.18% and now the GDP growth rate in 2020-21 has been -7.3 percent. At the same time, the effect of the second wave of Corona is also going to be visible on GDP.
GDP growth rate 1.6 percent in the fourth quarterActually, there was complete lockdown in the country during the first quarter (April-June) of FY21. All economic activities were closed. This led to a historic 23.9 percent decline in GDP in the first quarter. After that, the country's GDP (GDP) in the second quarter was -7.5 percent. Whereas in December quarter there was a marginal increase of 0.4 per cent. And now the GDP growth rate in the fourth quarter was 1.6 percent.Economy improvement quarter-on-quarterAccording to the data released by the National Statistical Office (NSO), the Indian economy is improving quarter-on-quarter. But due to the steep fall in the first and second quarter, the GDP growth rate for the entire financial year (2020-21) was -7.3 per cent. This figure did not compete with the Indian economy for the last nearly 41 years.
41-year-old record brokenEarlier, in 1979-80, the growth rate of the Indian economy was -5.24 per cent, 41 years ago. At that time there was a drought in the country. At the same time, crude oil prices had doubled. But in the fiscal year 2020-21, due to the corona epidemic, there was such a decline in GDP that the record for the last 41 years was broken.Fall in GDP is lower than anticipatedAccording to the data of the National Statistical Office, the GDP growth rate for the entire financial year i.e. FY21 was -7.3%. Whereas the central government itself in February this year had estimated a decline of 8 percent in GDP during the entire financial year 2020-21. That is, better GDP figures have come out than the government's estimates.Fiscal deficit lower than government estimateAt the same time, the fiscal deficit has also been lower than the government's estimate, which is good news for the country's economy. The growth rate of the Indian economy has been affected by the second wave of Corona, due to which the expenditure of the government has increased. Despite this, the fiscal deficit has remained at 9.3%, lower than the 9.5% fixed by the government. The fiscal deficit stood at Rs 18.21 lakh crore, which is 9.3 per cent of GDP.
Improvement in industry growth rateAt the same time, the growth rate of eight core industries has been 56.1% in April. In April-21, the coal sector grew at a rate of 9.5%. On the other hand, the crude oil sector recorded a decline of 2.1%. Natural gas grew 25% and the refinery grew at 30.9%. Fertilizer rose 1.7%, steel by 400% and cement by 548.8%. At the same time, the electricity sector grew at a rate of 38.7%.Continuous tremors on the GDP frontIn the last five years, the government has suffered a continuous setback on the GDP front. In the year 2015-16 (8.00%), in 2016-17 (8.26%), in 2017-18 (7.04%), in 2018-19 (6.12%), in 2019-20 ( 4.18% and now the GDP growth rate in 2020-21 has been -7.3 percent. At the same time, the effect of the second wave of Corona is also going to be visible on GDP.