By Prakash Chawla
Covid-19 has taken a toll on India’s per capita income; or the income earned by every Indian after factoring in inflation. For the financial year 2020-21 , average annual income earned by an Indian would be lower at Rs 85,929 as compared to ₹ 94,566 in the year 2019-20, according to data released on February 26,2021 As the pandemic hit the economy driving it into a recession for the first half of the year, the income of a citizen got reduced by 9.1 per cent.
Without factoring in inflation, India’s per capita income for the fiscal year 2020-21 is estimated at Rs 127,768, showing a decline of 4.8 per cent, as compared to ₹ 134,186 during 2019-20, as per the data released by the Ministry of Statistics and Programme Implementation.
When it comes to the overall Gross Domestic Product (GDP), it managed to come out of recession posting a growth of 0.4 per cent for the third quarter ( October-December) of 2020-21. For the first two quarters, the country’s GDP had slashed by 24.4 per cent and 7.3 cent. Technically, an economy slips into a recession if its total size drops by two quarters in a row.
The 2nd advance estimates the contraction of GDP at 8.0 per cent for year (2020-21) as a whole.
Services constitute more than 50 per cent of total Gross Value Addition in the country. Thankfully, GVA in agriculture continues to provide vital support to the economy having grown from 3.3 per cent in Q1 to 3.9 per cent in Q3.