{"id":15478,"date":"2021-06-01T00:00:00","date_gmt":"2021-06-01T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/01-06-2021\/provisional-estimates-of-annual-national-income-2020-21\/"},"modified":"2024-05-06T13:32:43","modified_gmt":"2024-05-06T08:02:43","slug":"provisional-estimates-of-annual-national-income-2020-21","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/01-06-2021\/provisional-estimates-of-annual-national-income-2020-21","title":{"rendered":"Provisional Estimates of Annual National Income 2020-21"},"content":{"rendered":"<p><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong><u>In News<\/u><\/strong><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">Recently, the<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> National Statistical Office<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> (NSO), <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Ministry of Statistics and Programme Implementation<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, has released the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Provisional Estimates of National Income for the financial year 2020-21<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, both at <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Constant<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> (2011-12) and<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> Current Prices<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">The NSO attributed\u00a0 <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>improvement <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">in growth estimates to the<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> improved performance of indicators<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, used in compilation of GVA, in the Q4 of 2020-21, owing to the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>calibrated and steady opening <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">of the economy.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">The NSO also warned that <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>data collection had been impacted <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">by the pandemic, so its <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>estimates could undergo sharp revisions<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">NSO is the<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> statistics wing <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">of the Ministry of Statistics and Programme Implementation consists of the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Central Statistical Office<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> (CSO), the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Computer center <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">and the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>National Sample Survey Office <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">(NSSO).<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong><u>Key Highlights<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Gross Domestic Product (GDP)<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>contracted by 7.3 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in 2020-21, marginally <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>better than the 8 percent contraction<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in the economy <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>projected <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">earlier.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">GDP growth in 2019-20, prior to the Covid-19 pandemic, was 4 percent.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Gross Value Added (GVA)<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It shrank<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> 6.2 per cent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in 2020-21, compared to a 4.1 percent rise in the previous year.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">GVA from <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>trade, hotels, transport, communication and broadcasting-related <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">services recorded the sharpest <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>decline of 18.2 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, followed by construction (-8.6 percent), mining and quarrying (-8.5 percent) and manufacturing (-7.2 percent).<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Positive Growth in Sectors: <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">Only two sectors bucked the trend of negative GVA growth, namely<\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Agriculture, forestry and fishing<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, which rose <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>3.6 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Electricity, gas, water supply and other utility services<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> rose up <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>1.9 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><img decoding=\"async\" style=\"height: 323px; width: 624px;\" src=\"https:\/\/lh4.googleusercontent.com\/Rw45oBzRzHGhiX4d0ebqV6tGpZoFUl2nAuZUdz0e0piv68T9Cu2-dZD1AmHXqA0lX8YS3BOK0pqfaAXOGNq2XkODfsfg5ZD5-_zFa7KNGB2hY5U-WC49-IQFcKB6AoQz3bdlzTS9\" \/><\/span><\/span><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">(Image Courtesy: <\/span><\/span><\/span><a style=\"text-decoration: none;\" href=\"https:\/\/indianexpress.com\/article\/business\/economy\/india-q4-january-march-gdp-provisional-estimates-2020-21-fy21-gross-domestic-product-data-covid-19-surge-7338168\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #1155cc;\"><u>IE<\/u><\/span><\/span><\/span><\/a><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">)<\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Quarter Wise Data<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">GDP contracted <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>24.4 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>April to June 2020<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> (Q1).<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It was followed by a <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>7.4 percent shrinkage<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> July to September<\/strong><\/span><\/span><\/span> <span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>2020 <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">(Q2).<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It returned to <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>positive territory<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> with a marginal <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>0.5 percent growth<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>October to December<\/strong><\/span><\/span><\/span> <span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>2020 <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">(Q3).<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>January to March 2021 <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">(Q4) helped moderate the damage, with a <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>higher-than-expected growth<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> of <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>1.6 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in GDP.<\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: square;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">The extent of <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>recovery in the performance of the informal sectors<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in Q4 FY2021 remains <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>uncertain<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> because <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>trends <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">in the same <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>may not get fully reflected<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> in the GDP data, given the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>lack of adequate proxies to evaluate the less formal sectors<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #1155cc;\"><strong><u>Impact of Covid-19 Waves<\/u><\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Chief Economic Advisor<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> (CEA) to the Finance Ministry highlighted that GDP forecasts are <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>not expected to be significantly affected<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">There is <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>uncertainty <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">on whether growth will be in double digits or single digits due to the<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> possibility of a third wave too<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Restrictions <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">across States have had an impact on activity but these will <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>reduce <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">and eventually be <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>removed<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, which will help the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>return of economic activity<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><img decoding=\"async\" style=\"height: 311px; width: 615px;\" src=\"https:\/\/lh3.googleusercontent.com\/wMLa39Br7MKDw0twRfMipZi3W647m3e5NJ8-D6UrZP7ccFh8xXz9YZ3mMwHvYS7pRGj_ceWOcTBcojceQxUxrxP1qXBV9nTDaGZ_75-TromOpUo3mSNiB_M5rlfZg7pPlR0vNyEE\" \/><\/span><\/span><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">(Image Courtesy: <\/span><\/span><\/span><a style=\"text-decoration: none;\" href=\"https:\/\/www.thehindu.com\/business\/Economy\/overall-impact-of-second-pandemic-wave-on-economy-not-likely-to-be-large-says-cea\/article34691328.ece#:~:text=India&#039;s%20Gross%20Domestic%20Product%20(GDP,19%20pandemic%2C%20was%204%25.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #1155cc;\"><u>TH<\/u><\/span><\/span><\/span><\/a><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">)<\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong><u>Projections for 2021-22<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">Growth will remain <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>subdued in the Q1 of 2021-22<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> as the severity of the second wave will show its impact.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">The current provisional estimates <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>need to be counterbalanced by likely downgrades of current GDP growth estimates for 2021-22<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">The combination of the second wave and the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>revised base effect <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">may imply a <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>lower GDP growth<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> for the Indian economy for 2021-22, may be in the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>range of 9-9.5 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">With a lower contraction in GDP as well as GVA in 2020-21, the sharp<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> recovery projected for 2021-22<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> by a number of agencies like the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>International Monetary Fund<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> (IMF) at <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>12.5 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> and the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>Reserve Bank of India<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> (RBI) at <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>10.5 percent<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> may have to be moderated.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">The <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>extent of recovery<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> will be determined by the<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> removal of localised lockdowns<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">Other key monitor cables are whether an <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>accelerated pace of vaccine rollout <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">can <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>prevent a third Covid surge<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<\/ul>\n<div>\n<table style=\"border-collapse: collapse; border: none; table-layout: fixed; width: 624px;\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td style=\"background-color: #fff2cc; vertical-align: top; border: 1px solid #000000;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong><u>Gross Domestic Product<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It is the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>monetary value of all finished goods and services <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">made within a country during a specific period.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It provides an<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> economic snapshot of a country<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, used to estimate the size of an economy and growth rate.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It can be<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong> calculated in three ways<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, using <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>expenditures<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>production<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">, or <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>incomes <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">and can be adjusted for inflation and population to provide deeper insights.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong><u>Gross Value Added\u00a0<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It is the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>value of output minus the value of intermediate consumption<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> and is a <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>measure of the contribution to growth<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> made by an individual producer, industry or sector.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">It provides the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>rupee value for the number of goods and services<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> produced in an economy after <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><strong>deducting the cost of inputs and raw materials<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"> that have gone into the production of those goods and services.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\"><img decoding=\"async\" style=\"height: 315.3957063450237; width: 610px;\" src=\"https:\/\/lh3.googleusercontent.com\/Z4Lp5Ma5g4J1jxTT3CjdXaVabKyY4jI1LHiYypESaxpM83IVPPGuM3PyCedpe15qsdJP2OURH6v3p0l5_VvEd25-FSF-r0K4y72cdBDacQ9yIwj3BbNV8CUeUHVtAPQraav8bbeH\" \/><\/span><\/span><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">(Image Courtesy: <\/span><\/span><\/span><a style=\"text-decoration: none;\" href=\"https:\/\/www.economicshelp.org\/blog\/3491\/economics\/difference-between-gnp-gdp-and-gni\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #1155cc;\"><u>EH<\/u><\/span><\/span><\/span><\/a><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">)<\/span><\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #000000;\">Source: <\/span><\/span><\/span><a style=\"text-decoration: none;\" href=\"https:\/\/www.thehindu.com\/business\/Economy\/overall-impact-of-second-pandemic-wave-on-economy-not-likely-to-be-large-says-cea\/article34691328.ece#:~:text=India&#039;s%20Gross%20Domestic%20Product%20(GDP,19%20pandemic%2C%20was%204%25.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 11pt;\"><span style=\"font-family: Arial;\"><span style=\"color: #1155cc;\"><u>TH<\/u><\/span><\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News Recently, the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, has released the Provisional Estimates of National Income for the financial year 2020-21, both at Constant (2011-12) and Current Prices. The NSO attributed\u00a0 improvement in growth estimates to the improved performance of indicators, used in compilation of GVA, in the Q4 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[62,26,46,105],"class_list":["post-15478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-growth-development","tag-gs-3","tag-indian-economy-related-issues","tag-planning"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/1240761HOD current-affairs.jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/15478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=15478"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/15478\/revisions"}],"predecessor-version":[{"id":24307,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/15478\/revisions\/24307"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/15479"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=15478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=15478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=15478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}