GDP Data from 2020

According to official World Bank estimates, India’s Gross Domestic Product (GDP) was approximately 2622.98 billion dollars in 2020. India’s GDP accounts for 2.32 per cent of the global economy.

What is GDP?

GDP is the acronym for Gross Domestic Product. It basically, quantifies the monetary worth of final goods and services produced in a country over a specific period, i.e., those that are purchased by the end-user (say a quarter or a year). It is a metric that measures all of the output produced within a country’s borders. The gross domestic product (GDP) is a measure of a country’s economic output and income. The gross domestic product (GDP) is the sum of all expenditures for all final goods and services generated in a certain period inside the country.

Indian GDP for 2020

The Indian economy shrank by 6.6% in 2020-2021, according to the National Statistical Office (NSO), owing mostly to the COVID-19 epidemic and government-imposed nationwide lockdown restrictions. The GDP declined by 7.3 %  in 2020-2021, according to provisional figures given by the government in May 2021. According to data released by the Ministry of Statistics and Programme Implementation, GDP at constant or real GDP  prices for the years 2020-21 is 135.58 lakh crore and in 2019-2020 it was raised to 145.16 lakh crore, respectively, representing a 6.6% contraction in 2020-21 and 3.7% growth in 2019-2020.  

According to reports, the nominal GDP or GDP at current prices for the year 2020-21 is anticipated to be 198.01 lakh crore, down from 200.75 lakh crore in 2019-2020, indicating a contraction of 1.4% in 2020-21 compared to 6.2 per cent increase in 2019-2020. In total, nominal GVA at basic prices fell by 1.6% in 2020-21, compared to a 6.9% increase in 2019-2020. In 2020-21, India’s economy’s GVA shrank by 6.2 percent, in comparison to a 4.1%  increase in the prior year.

GVA from Transportation, Communication, Trade, Broadcasting-related services, and Hotels degraded by 18.2%, along with which the construction and manufacturing decline at the rate of 8.6% and 7.2% respectively. 

The primary sector including, forestry, agriculture, mining, and  fishing. The secondary sector includes, electricity, manufacturing, water supply, gas, and other utility services, and the tertiary sector are expected to grow at 1.6% along with fluctuation of negative 2.8% and 7.8%, which economical in comparison to 1.9% growth with fluctuation of negative 6.8% to 8.4%  in the year 2019-2020 . According to sources, the nominal net national income for the year 2020-2021 is 171.94 lakh crore, which is less in comparison to the income of the year 2019-2020, indicating a decrease of 2.9 % in 2020-21 compared to a rise of 6% the previous year. It claimed that Per Capita Income was anticipated to be ₹132,115 in 2019 and ₹126,855 in 2020.

GDP shrank by 24.4 per cent in the first quarter of 2020 and then shrank by 7.4 per cent in the second quarter. With a modest 0.5 per cent increase in September to December quarter, it had returned to positive territory. The increased performance of indicators included in the calculation of GVA in the fourth quarter of 2020-21, owing to calibrated and steady openness of the economy, was ascribed by the National Statistical Office showing the enhancement in the growth estimate. In addition, revised data from various source agencies for prior quarters, as well as receipt of GST data for the third and fourth quarters, have all contributed to the change in the estimates, according to the NSO. 

The NSO however warned that the pandemic had hampered data collecting as much as any other activity, thus its estimates may be drastically revised. Early data on the Corporate Sector’s performance from April to December 2020, which the newest available information has been used to update the second Advance Estimates (which forecast an 8% drop in GDP), it said. “Due to the present Covid conditions, the Government has extended the statutory deadlines for completing the required financial returns for the fourth quarter. As a result, estimations of industries in the private sector are dependent on other variables such as IIP, GST, and so on. This could have an impact on future revisions to these projections,” it said.

Conclusion

The GDP shrank due to the deadly Pandemic. According to provisional National Income estimates provided by the National Statistical Office on Monday, India’s Gross Domestic Product (GDP) contracted 7.3 %  in 2020-21, somewhat less than the 8 per cent contraction previously forecast. Before the COVID-19 pandemic, GDP growth in 2019-2020 was 4%. After entering a technical recession in the first half of the year, the country’s GDP grew by 1.6 per cent in the fourth quarter of 2020-21, marking the country’s second quarter of positive growth. In Q4, the Gross Value Added increased by 3.7%, compared to 1% in Q3. In the first and second quarters of 2020-21, GVA fell by 22.4 percent and 7.3% , respectively. However, as per the latest reports- American multinational investment bank and financial services company Morgan Stanley has declined India’s growth prediction for 2022-23 by 50 points to 7.9 percent.  It has increased the forecast of retail inflation by 6 percent.