A lost year

Indian economy will need careful policy handling

According to the first advance estimates released by the Union Ministry of Statistics and Programme Implementation, real gross domestic product (GDP) in India will contract by 7.7 per cent in 2020-21. This is, of course, primarily a result of the pandemic, which has severely hit economic activity. The sectors most hit during this extraordinary year are those directly affected by social distancing and lockdowns. Trade, transport, and communications are expected to contract by over 20 per cent and both mining and construction would shrink by more than 12 per cent in terms of gross value added at 2011-12 prices. Importantly,