India GDP Growth Rate: The corona virus has curbed the economy of the world. The countries, which are considered to be the strongest in the economy, are also facing negative data at present. India has been a long lockdown, which has greatly hurt the economy of the country. At present, various estimates are being made about the economies of all countries. Research agency Goldman Sash has recently presented some data which has projected a steep decline in the Indian economy.
Learn what the investigating agency says?
Investigating agency Goldman Sachs believes that the Indian economy could see a decline of up to 14.8 per cent for the financial year 2020-21. The main reason for this is the lockdown imposed due to prevention of corona virus. Earlier, the agency had predicted a decline of 11.8 per cent. Apart from Goldman Sachs, Fitch Ratings and India ratings have also predicted the growth of GDP for the current financial year.
Growth expected in October-December quarter
Recently, Fitch Ratings has also released an predictive figure of GDP growth. The agency says the Indian economy could fall drastically by 10.5 per cent. But, while ensuring the people, the agency also pointed out that the economy has a lot of potential for growth in GDP in the third quarter of the financial year i.e., October to December quarter. The agency has said that the pace of reform will be slow and many inequalities can be seen. Let us say that this rating company had earlier predicted a decline of 5 per cent.
The research company is currently estimating the status of the Indian economy. Of these, Goldman Sachs has projected a change of -14.8% in the economy, Fitch Ratings -10.5%, Nomura -10.8 percent, HSBC -7.2 percent, India ratings -11.8%.
Negative impact of lockdown
Coronavirus led to a lockdown in the country, which saw a decline of 23.9 per cent in GDP in the first quarter of the current fiscal. In addition to the 3.5 per cent growth in agriculture, most of the sectors have seen losses. In fact, construction growth saw a steep decline of -51.4 per cent, manufacturing growth by -39.3 per cent, mining sector growth by -41.3 per cent and trade, hotels, transport growth by -47.4 per cent. This kind of a decline has been seen not only in India but also in many other developed countries. Only China saw an increase of 3.2.
Improvements may occur in 2022
A few months ‘ lockdown has made a huge impact on the Indian economy. Earlier, the 1980s saw a decline of 5.2 per cent. The decline in the Indian economy this year is really shocking. But India ratings say gdp growth rate will be 9.9 per cent in FY22. Well, the estimated figures cannot say anything special, but it is clear that the Indian economy will see a great improvement by the year 2022. One of the major reasons for this reform will be the Prime Minister’s ‘ self-reliant ‘ campaign.
Know what is GDP
The total value of all goods and services being built in the country within a year is called GDP Gross Domestic Product (GDP). GDP explains the state of the economy of any country. This shows whether the country is being developed or not, and how it is happening. The NSO releases the GDP figures every quarter i.e., 4 times a year. GDP is calculated by the composition extension, government extension, investment extension and net exports.