The GDP is projected to contract by a record 7.7 per cent in the current fiscal ending March 31, 2021, deepest contraction in four decades.
Representation image (Photo: iStock)
India’s Gross Domestic Product (GDP) is expected to witness a growth of 11 per cent in the fiscal year starting on April 1, as it makes a ‘V-shaped’ recovery on the back of countrywide coronavirus vaccination drive and increased consumer demand, said the Economic Survey 2020-21 on Friday.
The document was tabled by Finance Minister Nirmala Sitharaman in Lok Sabha earlier in the day.
The GDP is projected to contract by a record 7.7 per cent in the current fiscal ending March 31, 2021, deepest contraction in four decades.
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India witnessed its last annual contraction of 5.2 per cent in fiscal year 1979-80
Despite a V-shaped recovery and countrywide coronavirus vaccination programme, the government cautioned that it may take at least two years before the country reach its per-pandemic GDP levels.
The Economic Survey 2020-21 said the agriculture sector is the only silver lining while services, manufacturing and construction were most hit by the lockdown that was imposed to curb the outbreak of the COVID-19 pandemic.
“After an estimated 7.7 per cent pandemic-driven contraction in 2020-21, India”s real GDP is projected to record a growth of 11.0 percent in 2021-22 and nominal GDP by 15.4 per cent. These conservative estimates reflect upside potential that can manifest due to the continued normalisation in economic activities as the rollout of COVID-19 vaccines gathers traction,” the Survey said.
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