Covid-19 fallout: Indian economy expected to contract 7.7pc in FY 2020-21

The coronavirus-hit Indian economy is estimated to contract 7.7 percent in the 2020-21 financial year compared to the 4.2 percent growth in the previous fiscal mainly because of pandemic's fallout, said government data released today.

As per the first advance estimates of the national income released by the National Statistical Office (NSO), there was a contraction in almost all sectors with the exception of agriculture.

"Real GDP or GDP at constant prices (2011-12) in the year 2020-21 is likely to attain a level of Rs 134.4 lakh crore, as against the provisional estimate of GDP for the year 2019-20 of Rs 145.66 lakh crore... The growth in real GDP during 2020-21 is estimated at -7.7 percent as compared to the growth rate of 4.2 per cent in 2019-20," it said.

In the current fiscal, the manufacturing sector is likely to see a 9.4 percent contraction whereas growth was almost flat at 0.03 per cent in the year-ago period.

The NSO estimates significant contraction in mining and quarrying, trade, hotels, transport, communication and services related to broadcasting.

Agriculture sector is estimated to see a growth of 3.4 percent in 2020-21. However, it will be lower than the 4 percent growth recorded in 2019-20.

The Indian economy contracted 23.9 per cent in the first quarter and 7.5 per cent in the second quarter of the current fiscal year.