Economists at State Bank of India (SBI) have forecast a 16.5 per cent decline in the country’s gross domestic product (GDP) in the first quarter of the current financial year. Earlier, the SBI Ecowrap report in May had predicted GDP to fall by more than 20 per cent in the first quarter of the current financial year. However, with the conditions in the current uncertainty environment, it is now expected to fall by 16.5 per cent.
The SCOP report released on Monday said that as far as the results of the listed companies are concerned, corporate GVA (better than expected results for some financial and non-financial companies) is better than the earnings decline in FY 2020-21. Used to be. So far, nearly 1,000 listed companies have announced first-quarter financial results. Quarterly results show that the gross income of companies has fallen by more than 25 per cent, while the net income, ie profit has decreased by more than 55 per cent. However, the decline in corporate GVA (gross value addition) is only 14.1 per cent.
According to the report, “In principle, the cost of listed companies has been compensated by cutting costs. This did not affect the margins of the companies. “It further states that coronavirus penetration has occurred in rural areas in July and August. The share of rural and small districts in total new cases has increased to 54 percent.
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The countryside in grip of Corona
According to the report, the number of rural districts where there were less than 10 coronavirus cases. Andhra Pradesh and Maharashtra are more affected by the increasing cases of coronavirus in rural areas. It says, “These districts have about 2 to 4 per cent share in the gross state domestic product (GSDP) of their respective states. This indicates that cases are increasing in far-flung areas. “The report has estimated that the total loss in GSDP due to COVID-19 will be 16.8 per cent.
Top 10 states suffer the most!
State-wise analyzes indicate that the top 10 states account for 73.8 percent of the total GDP loss. Maharashtra’s contribution in this is 14.2 percent. It is followed by Tamil Nadu (9.2 per cent) and Uttar Pradesh (8.2 per cent) respectively. According to the ECORAP report, due to this the per capita loss at the national level is around Rs 27,000. In Tamil Nadu, Gujarat, Telangana, Delhi, Haryana, Goa, the loss is about Rs 40,000 per person in 2020-21.