India's GDP contracts by 6.6% in FY21: Govt

Indian economy contracted by 6.6 per cent in 2020-21 on account of outbreak of COVID-19 and subsequent nationwide lockdown to contain the pandemic, according to the government data released on Monday.

As per the provisional estimates released in May 2021, the GDP had contracted by 7.3 per cent in 2020-21.

''Real GDP or GDP at constant (2011-12) prices for the years 2020-21 and 2019-20 stands at Rs 135.58 lakh crore and Rs 145.16 lakh crore, respectively, showing a contraction of 6.6 per cent during 2020-21 as compared to growth of 3.7 per cent during 2019-20,'' National Statistical Office said in the revised national account data.

Under the first revision released in January 2021, real GDP or GDP at constant (2011-12) prices for the years 2019-20 was pegged at Rs 145.69 lakh crore, showing growth of 4 per cent during 2019-20.

''In terms of real GVA (gross value added), i.e., GVA at constant (2011-12) basic prices, there has been a contraction of 4.8 per cent in 2020-21, as against growth of 3.8 per cent in 2019-20,'' NSO stated.

During 2020-21, the growth rates of the primary sector (comprising agriculture, forestry, fishing and mining & quarrying), secondary sector (comprising manufacturing, electricity, gas, water supply & other utility services, and construction) and tertiary sector (services) have been estimated as 1.6 per cent, (-)2.8 per cent and (-) 7.8 per cent as against a growth of 1.9 per cent, (-) 6.8 per cent and (-) 8.4 per cent, respectively, in the previous year.

Nominal Net National Income (NNI) or NNI at current prices for the year 2020-21 stands at Rs 171.94 lakh crore as against Rs 177.17 lakh crore in 2019-20, showing a contraction of 2.9 per cent during 2020-21 as against growth of 6 per cent in the previous year, it stated.

Per Capita Income i.e. Per Capita Net National Income at current prices is estimated at Rs 1,32,115 and Rs 1,26,855 respectively for the years 2019-20 and 2020-21, it stated.

Moreover, the government's fiscal deficit rose to 50.4 percent of the FY22 target in April-December 2021, with a huge increase seen in tax collections as well as capital expenditure for the month of December 2021, data released on January 31 by the Controller General of Accounts showed.

In April-November 2021, the fiscal deficit had amounted to 46.2 percent of the full-year target.

Meanwhile, releasing the Economic Survey for the financial year 2021-2022, the government forecast that India will retain its tag of the world's fastest-growing major economy at 8-8.5 per cent GDP growth in the fiscal year starting in April, saying it has the fiscal space to do more to support the economy and is well placed to meet the future challenges.

India is poised to wrest the title world-beating economy tag this fiscal with a projected growth of 9.2 per cent, and the widespread vaccine coverage, supply-side reforms and easing of regulations are going to support it in the next.

The Economic Survey -- an annual report card of the economy -- presented in Parliament by Finance Minister Nirmala Sitharaman, warned about risks from global inflation and pandemic-related disruptions.