India’s GDP contracted 7.3% in 2020-21 as compared to 4.0% in 2019-20

India’s economy contracted by 7.3% in the financial year 2020-21, government data showed on Monday, as the country continues to reel from the repercussions of one of the worst outbreaks of the coronavirus pandemic in the world. 

India, Asia’s third largest economy, recorded a growth of 1.6% in the fourth quarter of the financial year between January and March, bettering the 0.5% growth from the October to December quarter.

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The recovery, following India’s first “technical recession” since independence, came with the gradual easing of lockdown measures amid a downward trend in infections. However, a deadly second wave of infections saw fresh restrictions implemented across the country, as millions were once again put out of work. 

The Gross Domestic Product (GDP) grew by 4% in FY 2019-20. 

“Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2020-21 is now estimated to attain a level of ₹135.13 lakh crore, as against the First Revised Estimate of GDP for the year 2019-20 of ₹145.69 lakh crore, released on 29th January 2021. The growth in GDP during 2020-21 is estimated at -7.3 percent as compared to 4.0 percent in 2019-20,” the Minstry of Statistics and Programme Implementation said in a release. 

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The economy grew by 3% in the corresponding fourth quarter in FY 2019-20, data from the National Statistical Office (NSO) shows. The NSO had predicted a contraction of 7.7% in its first advanced estimates released in January. 

Meanwhile, China recorded a growth of 18.3% in the fourth quarter of the 2020-21 financial year.