Following the Covid breakout and lockdown last year, the GDP had contracted by a record 23.9 per cent in the April-June quarter and further by 7.5 per cent in the second quarter. However, a V-shaped recovery is expected in the next fiscal year, according to the Economic Survey 2020-21.
The government has projected contraction in India’s gross domestic product (GDP) by 7.7 per cent in the current financial year even as it is seen expanding by 11 per cent in 2021-22 with a V-shaped recovery on the back of the Covid vaccination drive, according to the Economic Survey 2020-2021 tabled by Finance Minister Nirmala Sitharaman in Lok Sabha on Friday. Following the Covid breakout and lockdown last year, the GDP had contracted by a record 23.9 per cent in the April-June quarter and further by 7.5 per cent in the second quarter. The survey, which has come days ahead of the Union Budget for the new financial year, was authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian.
The Economic Survey projections on the GDP contraction mirror the forecast of the Reserve Bank of India that had predicted 7.5 per cent shrink in the GDP in its revised estimate from 9.5 per cent in October 2020. Rating agencies including ICRA and Crisil too had expected 7.8 per cent and 7.7 per cent contraction respectively while CARE Ratings had estimated the fall of 7-7.9 per cent against its previous projection of 8.2 per cent.
Source: Financial Express