23.9 Present GDP – Economic will survive ? – The Q1 GDP of FY 2020-21 dropped 23.9%, revealing the extent of damage the pandemic has caused to India’s economy.

Rate of GDP

Gross Domestic Product, abbreviated as GDP, is the total value of goods and services produced in a country. GDP is measured over specific time frames, such as a quarter or a year. GDP as an economic indicator is used worldwide to show the economic health of a country.
The Gross Domestic Product measures the value of economic activity within a country. Strictly defined, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time. … GDP is a number that expresses the worth of the output of a country in local currency.For example, if the prices rise by 2% (meaning, everything costs 2% more) and the nominalGDP grows by 5%, the real GDP growth is only increased by 3%. … GDP per capita is the total income of a country, divided by the number of inhabitants. It shows how rich people, on average

The U.S. government collects and compiles economic data through the Bureau of Labor Statistics, or BLS. Once the data is organized, it is used by the Bureau of Economic Analysis, or BEA, which is part of the Department of Commerce, to estimate the GDP and the national income.
GDP can be calculated by adding up all of the money spent by consumers, businesses, and government in a given period. It may also becalculated by adding up all of the money received by all the participants in the economy. In either case, the number is an estimate of “nominal GDP.”

Now let’s talk about Low GDP of India 23.9 percent-
Because of the lockdown, there was no labour due to lack of demand which in turn broke the supply chain causing the logistics to fall through.

Unfortunately, the road to recovery looks tough. Yields on India’s treasury bills are also at their lowest, while there is a rise in fiscal deficit and a fall in tax collection.

If all goes well, then we can hope to see the GDP reach 0 by the fourth quarter.

The only sector which made a positive GDP contribution in this quarter was Agriculture, but unfortunately, it isn’t taxed, so it couldn’t benefit the treasury in any way.

GDP at Constant (2011-12) Prices in Q1 of 2020-21 is estimated at Rs 26.90 lakh crore, as against Rs 35.35 lakh crore in Q1 of 2019-20, showing a contraction of 23.9 percent as compared to 5.2 percent growth in Q1 2019-20,” as per the data released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.

The data showed manufacturing, construction and trade sectors reported massive slump of 39.3 per cent, 50.3 per cent, 47 per cent, respectively. The government expenditure, as represented by the public administration services, contracted by 10.3 per cent, while mining and electricity sector contracted by 23.3 per cent and 7 per cent, respectively.

Real GDP growth at minus 23.9 per cent in Q1 FY21 was much lower than what markets were expecting. The print indicates that the trough in the economy was much lower than expected and the pickup will likely be more elongated. Production side was pulled down by deep contraction in manufacturing, construction, and trade, hotel, transport sectors while the expenditure side was clearly pushed lower by heavy contraction both in consumption and investment,” said Suvodeep Rakshit, Vice President & Senior Economist at Kotak Institutional Equities.

Real GDP growth at minus 23.9 per cent in Q1 FY21 was much lower than what markets were expecting. The print indicates that the trough in the economy was much lower than expected and the pickup will likely be more elongated. Production side was pulled down by deep contraction in manufacturing, construction, and trade, hotel, transport sectors while the expenditure side was clearly pushed lower by heavy contraction both in consumption and investment,” said Suvodeep Rakshit, Vice President & Senior Economist at Kotak Institutional Equities.

During the January-March quarter of the last fiscal, India’s GDP grew at 3.1 per cent, lowest in 44 quarters, on account of the economic slowdown in pre-COVID-19 period. Overall growth for full financial year 2019-20 (FY20) slumped to 4.2 per cent – lowest since FY09 when GDP was 3.09 per cent – compared to 6.1 per cent in FY19.

Expert says– this low rate of GDP can be recovered on the upcoming quarter. May be it can be go on 20 percent .
Because 23.9 percent low rate of GDP covered all the year.
And the rule of GDP – C + l + G + NX .
In this pattern C contributes 56% and I contributes 32% along with J contribute 11% and NX is based on net export .
GDP slow down just because the C  and I sector worked on a specific condition due to lockdown . As we know they contribute the most. Although it was bound to happen.

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