The above is news from Hindu. A general news but few analysis. | ECONOMY by VIVEK SINGH

The above is news from Hindu. A general news but few analysis.

1) The GDP growth has contracted by 7.3% in FY 2020-21 which is the maximum contraction (negative growth) in the post independence history of India. The first two quarters of FY 2020-21 saw negative (real GDP) growth of -24.4% and -7.4% respectively which led to declaration of "Technical Recession" in Indian economy. (the technical definition of recession is at least two consecutive quarters of negative real GDP growth).

The growth figure of -7.3% is also provisional which may get revised later.

2) India has faced negative growth in real GDP four times previously (after Independence) in 1957-58 (-1.2%) [Drought], 1965-66 (-3.66%) [drought/war], 1972-73 (-0.32%) [drought/Oil crisis] and 1979-80 (-5.2%) [Drought/political instability].

3) Earlier most of the agencies has projected -7.7% growth for 2020-21 and 10.5% growth for 2021-22. So, the 10.5% projected growth (which could be highest ever growth) for 2021-22 was basically because of BASE effect. BUT now since the contraction in 2020-21 is less (-7.3%) than expected (-7.7%), SO the impact of base effect on 2021-22 will be less and it has to be revised and now the growth for 2021-22 can be less than 10.5%. The other reason for less than 10.5% growth in 2021-22 will be the second covid-19 wave.

4) Only two sectors has experienced positive growth in 2020-21 one is agriculture, forestry and fishing and the other is electricity, gas, water supply and other services.

No need to go into too much analysis of various sectors of GDP growth and no need to remember all this data.