The country’s GDP (Gross Domestic Product) has fallen by 7.5 percent in the July-September quarter of the financial year 2020-21. This information has come out from the data released on Friday. The decline was 23.9 percent in the April-June quarter, the highest in the last 40 years. Even if the decline in GDP is less than the previous quarter, but the country has gone into a phase of technical resilience in the first half of the current financial year due to two consecutive quarterly declining GDP.
The major reason for the record fall in GDP in Q1 was the strict lockdown imposed across the country due to the Corona epidemic. Economic activity gained momentum after the lockdown opened. The Reserve Bank of India (RBI) had estimated that GDP would fall by 8.6 per cent in the second quarter of the current financial year. The RBI has said in its report that for the first time the economy has come under technical protection due to the fall in GDP for two consecutive quarters.
7 percent drop in GVA
According to the Ministry of Statistics and Program Implementation, GDP on the Constant (2011-12) prices is estimated to be Rs 33.14 lakh crore in the second quarter of FY 2020-21, as compared to Rs 35.84 lakh crore in the same quarter of the previous financial year. . This shows a 7.5 percent fall in GDP during the second quarter, while in July-September last year, GDP registered a growth of 4.4 percent. The ministry said that GVA (gross value added) is estimated to be Rs 30.49 lakh crore in the September quarter, which is 7 per cent lower than the GVA in the same quarter last year. GVA stood at Rs 32.78 lakh crore in the September quarter of 2019-20.
In the July-September quarter of this year, China’s economy grew at a rate of 4.9 percent. China’s growth rate was 3.2 percent in April-June.
GDP growth in previous quarters
Growth in agriculture sector remained under lockdown
Talking about the quarter from April to June during the lockdown, there was a decline in other sectors except the agriculture sector. The agriculture sector showed a growth of 3.4 percent. Talking about other sectors, the manufacturing sector registered a decline of 39.3 per cent in the first quarter of the current financial year, 23.3 per cent in the mining sector and 50.3 per cent in the construction sector. Trade, transport, communication and other related services saw a decline of 47 percent.
Economy recovery during unlock
The economy gained momentum after the lockdown. Vehicle sales, real estate, manufacturing PMI and rail freight earnings were higher in September than in September. Apart from this, for the first time in September this year, income tax collection increased compared to the same month last year. The GST collection in October was also more than 1.05 lakh crore. With the increase in sales, the IHS Market Manufacturing PMI also increased to 58.9 in October from 56.8 in September, the highest in the last ten years.