Will Covid-19 impact on informal sector disrupt GDP estimates in FY21?

While the informal sector has been affected more severely than the formal, it is also resilient and can revive quickly, say experts

The National Statistical Office has predicted that India’s gross domestic product will fall 7.7 per cent in the financial year ending March 31, 2021, which has been badly affected by the Covid-19 pandemic. This estimate, in line with the Reserve Bank of India’s recent assessment, is strongly suggestive of a faster-than-expected economic recovery, as the earlier estimates were close to 10 per cent real contraction in the economy. 

More than the second advance estimates, which are released in February, the provisional estimates which come out in May are likely to revise the GDP number considerably. Same goes for the revised estimates