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MumbaiOne hour ago
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GDP growth has been -7.3% in the financial year 2020-21. It was 4.2% in 2019-20. In terms of decline, this is the worst phase of the economy in the last 40 years. Earlier growth rate was recorded at -5.2% in 1979-80. The reason for this was drought. Apart from this, the prices of crude oil had also doubled. At that time the Janata Party government was at the center, which fell after 33 months.
However, the growth rate of GDP has been 1.6% during January to March i.e. in the fourth quarter. In the financial year 2020-21, there was a decline in GDP in the first two quarters in 4 quarters, while it saw an increase in the last two quarters. This is the second consecutive quarter in which the country’s economy has been seen growing despite Corona. GVA has recorded a decline of 6.2% over the whole year.
Size estimate of 38.96 lakh crore in the fourth quarter
Economy size is estimated at Rs 38.96 lakh crore in the fourth quarter. It was Rs 38.33 lakh crore at the same time a year ago. On an annual basis, it has been estimated at Rs 135.13 lakh crore, as compared to Rs 145.6 lakh crore a year ago.
Agricultural growth in GDP was 4.3% in the fourth quarter. It was 4.3% in the same time a year ago. The construction sector grew by 14.5% in the fourth quarter. The growth rate of electricity, water, gas and other utilities has been 9.1%. It was 7.3% a year ago.
Fall below estimate
The government, which released the advance estimate for the second time in February, said that the economy could decline by 8% annually. However there is a lower decline than that estimate. A 4% gain was seen in FY 2019-20.
However, the effect of the second wave of Corona will be seen between the first quarter of this current financial year i.e. April to June, as the states have imposed a second lockdown in late March and April.
Fiscal deficit was lower than the government’s estimate
On the other hand, the fiscal deficit during FY 2020-21 was lower than the government’s estimate. The Finance Ministry released the data on fiscal deficit on Monday. The fiscal deficit under this is Rs 18,21,461 crore. This is 9.3% of the country’s GDP, which is lower than the Finance Ministry’s estimated 9.5%.
Fiscal deficit stood at 4.6% of GDP during the financial year 2019-20. The Controller General of Accounts (CGA) released revenue deficit (revenue deficit) of 7.42% at the end of the financial year, releasing the central government’s revenue-spending figures for 2020-21.
Economy has been falling continuously since 2016-17
The GDP growth rate in 2019-20 was 4.2%. This was the lowest growth in 11 years. Earlier it was 6.12% in 2018-19, 7.04% in 2017-18 and 8.26% in 2016-17. The main reasons for this decline were demonetisation in November 2016, and then the implementation of GST from July 2017.
Economy was open in January, February
Experts believe that the economy opened up completely in January and February. The lockdown was removed from the states. Therefore, it can be seen increasing during this time. This is also because the Goods and Services Tax (GST) collection in January, February, March has also been good, which was above Rs 1 lakh crore. October-December 2020 quarter was 0.4%. At that time, it was estimated that the country’s GDP may fall by 8% between the business year 2020-21 i.e. April 2020 to March 2021.
technology The recession From outside I came Economy
The country’s economy had come out of the technical downturn as it recorded growth in the third quarter. Earlier, there were two consecutive quarterly declines in GDP. Due to the tremors caused by the epidemic, there was a 23.9% decline in GDP in the first quarter ie, April-June quarter. Thereafter, in the second quarter i.e. July-September, there was a 7.5% decline in GDP.
Who is responsible for GDP fluctuations
There are four important engines for reducing or increasing GDP. The first is you and us. The amount you spend contributes to our economy. The second is private sector business growth. It contributes 32% to GDP. The third is government spending.
It means how much the government is spending in producing goods and services. It contributes 11% to GDP. And fourth is note demand. For this, India’s total exports are subtracted from the total imports. Since imports are more than exports in India, its impact is negative on the GPD.
What is GDP?
Gross domestic product (GDP) is the total value of all goods and services produced in a country in a given year. GDP is the largest measure of a country’s economic development. Higher GDP means that the country’s economic growth is increasing, the economy is creating more jobs. This also shows which sector is developing and which sector is lagging economically.
What is GVA?
In simple terms, gross value added means GVA, GVA shows the total output and income in an economy. It tells how many rupees of goods and services were produced in a given period after taking into account the input cost and raw material price. It also shows how much production has been done in a particular sector, industry or sector.
From the national accounting perspective, the GVA is the figure obtained after taking out the subsidy and tax in GDP at the macro level. If you look at the production front, you will find it an item balancing national accounts.