In the year 2020-21, GDP will shrink by 10 to 11 per cent, a loss of Rs 20 lakh crore to the economy

New Delhi, 6 September 2020 Sunday

Former Finance Secretary Subhash Chandra Garg's comments are significant as experts are expressing concern over the country's economic downturn. On the question of reduction, former finance secretary Subhash Chandra Garg said the loss was due to inadequacy of the countrywide lockdown strategy. He estimates that the economy could lose Rs 20 lakh crore in the current financial year. Garg said the spread of the corona virus epidemic was slow at first, but it did a lot of damage to the economy.

Garg believes that the economic situation can only return to normal by the fourth quarter (January-March 2021), when the country's total GDP is affected by Covid-19 and has caused a loss of 10 to 11 per cent, or about Rs 20 lakh crore. Will be. In a special conversation on economics related issues, the former administration official suggested that by improving the self-reliant India package, it should be used to reach more and more micro and small enterprises and unemployed workers need special help.

The former finance secretary said the size of the economy could shrink by 10 to 11 per cent in the current financial year. After a 23.9 per cent decline in the first quarter, it could be 12 to 15 per cent in the second quarter and 4 to 5 per cent in the third quarter. The situation may return to normal in the fourth quarter. Overall, GDP could fall by 10 to 11 percent in 2020-21. That is, if we talk about statistics, it will be reduced by Rs 20 lakh crore.

A decline in GDP means a decline in the country's income. Decreases in income reduce costs and hurt economic activities. In the budget papers for the year 2020-21, the country's gross domestic product (GDP) in the last financial year (2019-20) was Rs. 2,04,42,233 crore. Garg said the lockdown has dealt a major blow to micro-small industries. There are a total of 7.5 crore Micro, Small and Medium Enterprises (MSMEs). They should be helped. Only 40-45 lakh people are getting the benefit of the schemes introduced under Self-Reliant India.