On May 26, 2020 According to the State Bank of India’s(SBI) Ecowrap report India’s Gross Domestic Product(GDP) is estimated to grow at 1.2% in the last quarter(Q4) of FY20 as economic activity came to a halt since last week of March due to the nationwide lockdown.
Major Highlights of the report
i.The GDP is likely to be 4.2% for FY20 as compared to the 5% projected earlier and (-)6.8% for FY21. The gross value added (GVA) growth would be nearly (-) 3.1%. for FY21
ii.The GDP growth of 3rd quarter of FY20 slipped to a nearly seven-year low of 4.7%, in Q1 it was 5.1% & in Q2 was 5.6%.Â
iii.The report forecast a loss of at least Rs 1.4 lakh crore during the last week of March.
- In red zones & almost all the big districts of the country, the loss is maximum (around 50%). The combined loss of orange and red zones is around 90% of total loss.
- In case of state-wise analysis, the top 10 states accounted for 75% of total GDP loss with Maharashtra contributing 15.6% of total loss followed by Tamil Nadu (9.4%) and Gujarat (8.6%).
iv.The estimates in the report are based on an assessment of current trends which may change rapidly as the cyclone disaster in West Bengal & the continued return of migrant labourers.
About SBI:
Headquarters– Mumbai, Maharashtra
Chairman– Rajnish Kumar
