India’s GDP contracts by 7.3%
Part of: GS Prelims and GS -III – Economy
- India’s Gross Domestic Product (GDP) contracted by 7.3% in 2020-21, as per report released by the Central Statistical Office.
- GDP growth in 2019-20, prior to the COVID-19 pandemic, was 4%.
- The Gross Value Added (GVA) in the economy also shrank 6.2% in 2020-21, compared to a 4.1% rise in the previous year.
- Only two sectors showed positive GVA growth — agriculture, forestry and fishing (3.6% positive growth), and electricity, gas, water supply and other utility services ( 1.9% positive growth).
- Sharpest decline: Trade, hotels, transport, communication and broadcasting-related services (-18.2%), followed by construction (-8.6%), mining and quarrying (-8.5%) and manufacturing (-7.2%).
Important value additions
- Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period.
- In economics, gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy.