HOME BUY COURSES

LOGIN REGISTER




Or






The CAPTCHA image

Enter email to send confirmation mail






Decrease in GDP Growth

Sun 31 May, 2020

According to the provisional data released by the National Statistical Office (NSO), economic growth slowed to an 11-year low of 4.2% in 2019-20. This is the lowest annual growth rate of GDP registered under the new GDP data series which uses 2011-12 as the base year.

Background

  • As per the figures, production of eight core infrastructure industries also declined by a record 38.1% in the month of April, while the country's fiscal deficit reached 4.6% of GDP in the financial year 2019-20, which is mainly due to lower revenue.
  • The impact of this lockdown is being seen on various economies of the world including India, as economic activities have come to a complete halt.

Major Highlights

  • Gross Fixed Capital Formation (GFCF) has recorded a negative growth of (-) 2.8% in the financial year 2019-20. GFCF refers to the estimation of net capital expenditure on permanent capital in the government and private sector.
  • Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2019-20 is now estimated to attain a level of ₹ 145.66 lakh crore.
  • The Manufacturing Purchasing Managers' Index fell to a low of 27.4 in April, from 51.8 in March.

Gross Domestic Product (GDP)

  • It is a measure of economic activity in a country. It is the total value of a country’s annual output of goods and services. It gives the economic output from the consumers’ side.
  • GDP = Private consumption + Gross investment + Government investment + Government spending + (exports-imports)
  • or GDP = C + I + G + (X - M).