States’ GDP to shrink up to 14.3% in Financial Year 2021

Mumbai, June 29

The gross state domestic product (GSDP) of all states is likely to contract up to 14.3% in the current financial year due to the impact of Covid-induced lockdown on economic activities, says a report.

States such as Assam, Goa, Gujarat and Sikkim are likely to witness a double-digit contraction in FY2021, India Ratings and Research said in a report on Monday.

"We expect the gross state domestic product (GSDP) of all states in India to contract in FY21. The contraction will be in the range of 1.4%-14.3%,” the report said.

Despite the nationwide lockdown enforced on March 25, 2020, several economic activities defined as essentials remained operational.

The impact of the lockdown on sectors namely agriculture, industry and services was different, it said. — PTI

India Ratings and Research report

• States such as Assam, Goa, Gujarat and Sikkim are likely to witness a double-digit contraction in FY2021
• The top five major states where the impact of lockdown was the most pronounced are Karnataka, Jharkhand, Tamil Nadu, Kerala and Odisha
• The five major states where the impact of lockdown was the least pronounced are Madhya Pradesh, Punjab, Bihar, Andhra Pradesh and Uttar Pradesh