India’s GDP contracts by 7.3%

  • IASbaba
  • June 1, 2021
  • 0
UPSC Articles
Print Friendly, PDF & Email

India’s GDP contracts by 7.3%

Part of: GS Prelims and GS -III – Economy 

In news

  • 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%.

Key takeaways 

  • 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.

Search now.....

Sign Up To Receive Regular Updates