India GDP estimated to contract 7.7% in 2021
Almost all sectors, except agriculture, were predicted to see contractions, said the advanced estimates of the national income. The agriculture sector is projected to grow 3.4%, while the services, transport, trade, and hotel are expected to contract by 21.4% in total.
According to the statement, the economy is adversely affected by the country's lockdown in the face of the coronavirus pandemic.
“With a view to containing the spread of the Covid-19 pandemic, certain restrictions were imposed from 25 March 2020. Though the restrictions have been gradually lifted, there has been an impact on the economic activities as well as on the data collection mechanisms,” said the statement.
“Estimates are therefore likely to undergo sharp revisions for the aforesaid causes in due course,” it added.
India’s economy contracted by nearly a quarter - a record 23.9% - from April to June last year when the country went into complete lockdown to curb the spread of the novel coronavirus.
The country in 2019-20 had registered a 4.2% growth in its economy. ■