Second wave of Covid-19 pandemic pushed GDP into deepest contraction

The situation changed over the second half as gradual unlocking, easier fin­ancial conditions and higher household financial savings, helped stoke pent-up demand

Latest GDP estimates released by the NSO reaffirmed the economy witnessed its deepest contraction in the aftermath of the pandemic since FY50-51, the year in whi­ch national accounts compi­lation begun. Real GDP registered a contraction of -7.3 per cent YoY in FY20-21, marginally better than the earlier estimate of -8 per cent. With this the size of the econ­omy was 3 per cent smaller in March 2021 compared to Ma­r­ch 2020. 

The first half saw a recession with a de-growth of -16 per cent, followed by a recovery in the second with 1 per cent growth, on the back of non-farm