The Gross Domestic Product (GDP) data for the first quarter of FY 2021 will be released by The Central Statistics Office (CSO) by August 31, 2020, which will have an adverse statistical reflection of pandemic led lockdowns and restrictions on our economic trend and growth. The growth getting impacted and will be dragged down further due to the limitations in collecting tax the report stated.
The first quarter of the current fiscal will see a sharp decline of 20 per cent in India’s GDP due to the unexpected pandemic-induced crisis, reported by Care Ratings. The Gross Domestic Product data report will be released by the Central Statistics Office (CSO) for the first quarter of Financial Year 2021 on August 31 which is expected to show a sharp decline pointing towards the uncertain and least expected lockdown came to us.
Even though extensive uncertainty prevails about the quarterly economic performance, taking judgement of the unfavourable effect of lockdown we are fastening the real GDP development at negative 20 per cent Year on Year for Q1 FY21 the rating office stated in a report. The agency explained about the disturbances brought about by the countrywide lockdown injured generally financial and business activities across the nation in high-frequency indicators.
Even though the government had exempted certain selected activities which are related to agriculture and farming, banking including NBFCs and HFCs, construction and building activities in rural areas from lockdown constraints, these activities have stayed dormant because of labour deficiencies and other operational issues.
The Gross Value Added is estimated to contract by nearly 19.9 per cent in Quarter 1 of FY 21, in almost all industries and sectors excluding agriculture and public expenditure. The low tax collections have also impacted the revenue of the country. The service sector is predicted to contract by 16.8 per cent but the rise in government expenditure will give moderate and good support is stated in the report.
Private-sector consumption continued below par as a partial effect of lockdown. Exports have slandered by a substantial 37 per cent in Quarter 1 during FY21 due to subdued demand in international markets and trade limitations forced by certain countries due to the pandemic. Tax collections were also declined as combined GST collections in Quarter 1 FY21 were 41 per cent lesser at Rs 1.85 lakh crore as related with Quarter 1 FY20 on account of restrictions on arrangements and movements of goods and muted demand due to lockdown it further added.
