COVID-19 has shrunk many almost all the countries GDP to a great extent. Even though countries like China is still progressing with a positive GDP rate of 3.2%. Now according to the recent reports, the India GDP 2020 has been shrunk down to 23.9 per cent in comparison to the previous financial year. Due to the pandemic, all the manufacturing, as well as the production sectors, were down.
Now let’s get to the ground report and see the cause as well as the measures taken in future to revive the economy. Since this depreciation is large it will take some time for the revival. Let us know about some terms regarding the economy.
GDP: GDP stand for Gross Domestic Product it is the measure of the market value of goods produced in a specific time period. The GDP of a county measure quarterly means the good manufacture in a quarter period of time.
GVA: GVA stands for Gross Value Added it is a measure of goods produce in a particular area, sector and industry of an economy.
What Is India GDP 2020?
According to the stats, the current GDP rate is in downfall by -23.9% from previous financial 2019-20. In the first quarter of 2019-20, the GDP od the country was around 5.2%. It means that the goods and services produced during the time period of 2019-20 there is the downfall of 23.9% in this financial year. The downfall of 22.8 in Gross Value Added in comparison to its previous financial year.
Around 4 decades before in 1979, this kind of situation occurs when the GDP rate goes down to -5.2%. Now here are some dates when the country faces the negative growth rate. The country faces the negative growth rate of five times including the 2020-21 financial year after the independence.
- During 1957-58, at that time the country there was the downfall of -1.2% in-country GDP rate.
- During 1965-66, -3.7% of downfall in the country GDP rate.
- In the year 1972-73, -0.3% of downfall in the country GDP rate.
- During 1979-80, -5.2% of downfall in the GDP rate.
Here are some statistics of the sectors for the first quarter of the financial year 2020-21. Due to the lockdown in the country the industries were shut down for the two months.
- Industries get a negative growth rate of -38.1%.
- The services growth rate is also negative -20.6%.
- Manufacturing Industries has also a negative growth rate of -39.3%.
- Only the agriculture sector is in shows the positive growth rate of 3.4%.
- Trade, Hotels have a negative growth rate of -47%.
- Mining also shows the negative growth rate of -23.3%.
- The power sector has -7% growth rate.
- Construction faces the most negative growth rate of -50%.
- Financial and real estate shows the negative growth rate of -5.3%.
- Public administration shows a negative growth rate of -10.3%.
What Is The Solution To Revive The Economy?
- Firstly, the government should take more precautionary measures in order to avoid spreading of the virus. So that all the sectors can be open and works normally.
- Secondly, in order to revive the economy experts advise in giving loans outside the country so that there will flow of money. But in this condition, RBI needs to make sure that inflation rate does not go high.
- This is the worst condition of the economy and now it is growing at a small rate. All the sectors are recovering slowly and steadily.
- Other countries are facing the economic recession and some of them are as follows. These stats are the first quarter of the financial year 2020-21.
United Kingdom: -22.1%
Hence these are the solutions to increase the India GDP rate for the next quarter.