The country’s GDP growth rate in the October-December 2020 quarter was registered at 0.4%. This was confirmed in the figures released by the National Statistical Office (NSO) on Friday. In the official figures, it was said that in this business year 2020-21, the country’s GDP may fall 8%.
Economy out of technical recession
with the development in the third quarter, the country’s economy came out of the recession. Earlier, for the two consecutive quarter GDP was declined. Due to the shocks given by Corona Pandemic, in the first quarter (the April-June quarter), GDP declined 23.9%. After this, in the second quarter7.5% decline in GDP was recorded.
Also read: India Faces 23.9% Contraction In GDP, Worst In Past 40 Years
Estimated GDP of 36.22 lakh crore
GDP has been estimated in the third quarter of 2020-21 (with base year2011-12) at 36.22 lakh crore rupees. In the same period a year ago it was 36.08 lakh crore rupees. Growth in GDP is 8% decline during 2020-21. In contrast to it in 2019-20, it registered a growth of 4 per cent.
Recovering economy in January
Nation has seen a recovery in business activities in January this time. The service sector has increased in the fourth consecutive month. It has been also growing fast in January. Export and manufacturing activities are also increasing. Reserve Bank has estimated growth of 10.5% in the country’s economy in the financial year 2021-22. The estimation of the International Monetary Fund (IMF) is 11% growth during 2021-22.
The fiscal deficit reached 12.34 lakh crore rupees
India’s fiscal deficit was 12.34 lakh crore rupees till January. Based on the government’s revised estimates, it is 66.8% of the entire proposed budget. The government collected revenue from the tax was Rs 11.02 lakh crore, while the expenditure was 25.17 lakh crore rupees.
What is GDP?
Gross Domestic Product (GDP) is the total value of all the goods and services producedwithin the domestic boundary of the country in a year. GDP is the primary scale of economic development of a country. More GDP means that the economic growth of the country is increasing. GDP estimates also show which sector is growing and which sector is financially dipping.
What is GVA?
Gross Value Added i.e. GVA, in simple words, reveals the total output and income in an economy. It shows that after deducting the price of input cost and raw material, how much goods and services were produced. It also shows the sector-specific production. From the National Accounting’s perspective, if the figure is available after removing subsidies and tax in GDP at the macro level, it is GVA.