June 30: It is public knowledge that the coronavirus has punched a massive hole in the global economy, bringing several long-standing organizations and businesses to a shocking halt.
According to India Ratings and Research (Ind-Ra), the prediction made is that the gross state domestic product (GSDP) of all states in India will contract in the range of 1.%-14.3% during the Financial Year of 2021.
To refresh, the GSDP can be described as the sum total of value added by different economic sectors (Agriculture, Industry & Services) produced within the boundaries of the state calculated without duplication during a year.
Out of all the states, two from the North East region – Assam and Sikkim, are going to experience a double-digit contraction, along with Goa (which is at the highest at 14.3%) and Gujarat. Sikkim’s estimated GSDP growth in FY21 is predicted at -10.9%, possibly due to the hit that the tourism and hospitality industry has taken, along with entrepreneurship and education.
The nationwide and statewide lockdowns (after the former was heavily relaxed with Unlock 1.0) affected various sectors like tourism and hospitality, aviation, retail etc., leaving countless people unemployed.
It must be mentioned that agricultural activities were not impacted as much as the service industry was, and states like Haryana (-6.9%) and Punjab (-3.0%) which have a stronghold on India’s total agricultural output are one of the least affected states due to the lockdown.
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