GDP India 2021 - Contracts 7.3 Percent due to Pandemic

 GDP India 2021 - Contracts 7.3 Percent due to Pandemic 

The Country's Gross Domestic Product(GDP) fell 24.4 Percent in the first quarter of fiscal 2020-21. India's economy was hit hardest by the Covid-19 Pandemic in the April to June quarter of 2020. It then fell by 7.4 Percent in the Q2FY21 which is July - September.

Due to this, the country experienced a major recession last year. In the Economic cycle, If the GDP has fallen negatively for the two consecutive quarters in general, then it is called an Economic Recession. The Country recovered slightly from the recession and grew by 0.5 Percent in the third quarter. 

India's GDP grew by 1.6 Percent at the end of the fourth quarter, according to the latest report by the Central Bank. Overall, India's Gross Domestic Product - economy has fallen 7.3 Percent in the last fiscal year 2020-21. 

The country's real economy, which had been somewhat paralyzed since the pre-epidemic period, is now on a growth path after the Coronavirus Economic Downturn. However the economic loss caused by the Second wave and the anticipation for the third wave will be reflected in the economy of the current financial year.

In the Fourth quarter of FY21, the GDP grew by 1.6 Percent which is more than the expected. on Expenditure, Private sector contributed with 2.7 Percent and the Government contribution accounted with 28.3 Percent during the said above quarter. The currently stated value has been positive compared to the fourth quarter of previous year.


 

Significant growth has taken place in Export-Import, Manufacturing and Infrastructure. India, which is said to be the Third largest and Emerging economy in Asia, has been focusing on attracting Foreign investments and disinvestment on State owned enterprises for the past few years.

Comparing the GDP with other countries, the United States has fallen (-3.5) Percent, Germany down by (-4.9) Percent, Mexico (-8.2)% and Argentina by (-10) Percent. Russia and Brazil were also reported a decline of (-3.1)% and (-4.1)% respectively.

Japan fell by (-4.8) percent, Canada (-5.4)% and Britain reported with (-9.9) Percent. Where China was up by (+2.3) Percent and Turkey grew by 1.8 Percent. Looking at the list of Advanced and Emerging nations, India's said above economy decline for the Financial year 2020-21 has been slightly as worst.

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