India Inc's profit contribution to GDP at two-decade low, shows data

India Inc’s profit contribution to the country’s gross domestic product (GDP) fell to 1.8 per cent in 2019-20 (FY20) — the lowest reading since at least 1999-2000. At its peak in FY08, the contribution stood at 7.8 per cent. Since then, it has been on a downward slope. 

Corporate earnings growth has largely remained stagnant in the last five years. The earnings per share (EPS) for Nifty companies was Rs 416 in FY17. The reading could be around Rs 450 for the current financial year. India’s corporate profit-to-GDP ratio is among the lowest in the world. The global average is about