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 due to two consecutive quarterly declines in GDP, the country has gone into a phase of technical retention in the first half of the current financial year. The Chief Economic Advisor of the country, KV Subramanian has said about the GDP figures that the current state of the economy reflects the impact of Kovid 19.
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) estimated that GDP would fall by 8.6 percent 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.
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. The GVA stood at Rs 32.78 lakh crore in the September quarter of 2019-20.
