GDP, GVA plunge in FY21 lower than earlier estimate: NSO

Real GDP declined 6.6% in FY21, compared with a 7.3% contraction estimated previously

The contraction in India’s economy during the pandemic-hit year FY21, was less than estimated earlier, as per revised data released by the National Statistical Office (NSO) on Monday. Real GDP declined 6.6% in FY21, compared with a 7.3% contraction estimated previously, while the Gross Value Added (GVA) dropped 4.8% as opposed to a 6.2% fall indicated earlier.

The NSO, however, also revised downwards India’s real GDP growth for FY20 to 3.7% from 4% estimated earlier. Thus, a part of the revisions in FY21 data were triggered by the base effect, while the NSO attributed the revisions to the use of more detailed industry information instead of using the benchmark-indicator method employed at the time of provisional estimates released last May.

The FY21 growth rates ‘may well undergo additional changes once the data from the Annual Survey of Industries as well as other sources becomes available’, said ICRA chief economist Aditi Nayar.