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• INTRODUCTION
• SECTOR WISE GDP IN INDIA (2019-20)-AT A GLANCE
• IMPACT ON AGRICULTURE SECTOR
• IMPACT ON INDUSTRY INDUSTRY
• IMPACT ON SERVICE SECTOR
• CONCLUSION
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2. Coronavirus disease 2019 (COVID-19) is a contagious disease caused by severe acute respiratory
syndrome coronavirus 2 (SARS-CoV-2).
The first case was identified in Wuhan, China, in December 2019. (In India 30 January 2020)
Symptoms of Covid-19 are variable, but often include fever, cough, fatigue, breathing difficulties, and
loss of smell and taste.
By mid-May 2020, six cities accounted for around half of all reported cases in the country Mumbai,
Delhi, Ahmedabad, Chennai, Pune and Kolkata
On 10 June, India's recoveries exceeded active cases for the first time. Infection rates started to drop
significantly in September, and the number of daily new cases and active cases started to decline
rapidly.
India has over 30 anti-COVID vaccines in various stages of development and a national vaccination
drive was started on 16 January 2021.
India began the world's largest Covid vaccination drive on January 16 and in 18 days the country has
successfully vaccinated over 4.1 million healthcare workers. 3
3. Sector GVA in 2019-
20 (Rupees in
Crore)
Share
(%)
Agriculture Sector 3,257,443 17.76
Agriculture and allied sectors 3,257,443 17.76
Industrial sector 5,040,100 27.48
Mining & quarrying 393,102 2.14
Manufacturing 2,775,587 15.13
Electricity, gas, water supply &
other utility services
486,516 2.65
Construction 1,384,895 7.55
Services Sector 10,045,694 54.77
Trade, hotels, transport,
communication and services
related to broadcasting
3,316,653 18.08
Financial, real estate & prof
services
3,842,524 20.95
Public Administration, defense
and other services
2,886,517 15.74
T
otal 18,343,237 100
Source: Ministry of Statistics and Programme Implementation
GVA (Gross Value Added): GVA is the measure of the value of goods and services produced in an area, industry or sector of an economy
(GVA= GDP+ Subsidies on products-Taxes on products)
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This indicates that agricultural activities
for rabi harvesting and kharif sowing
were largely unaffected by the covid-
19induced lockdown.
Source: Ministry of Agriculture, Department of Food and Public Distribution
Note: Production figures for 2020-21 are estimates
Effect on Agriculture Production
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For the year 2020-21, Horticulture
production is estimated to 303 million
tonnes. However, it was 285 and 297 million
tonnes for 2018 and 2019 respectively.
5. Source: Economic Survey 2020-21
In 2020-21, the growth
rate is estimated to be 3.4
per cent.
Contribution of the sector
to Gross Value Added
(GVA) declined from
18.3% to 17.8% between
2014-15 and 2019-20
It is estimated to Increase
19.9% in 2020-21
Agriculture is set to cushion the shock of the COVID-19 pandemic on the Indian economy in 2020-21. 13
6. The growth in GVA of agriculture and allied sectors has been fluctuating over time.
However, during 2020-21, while the GVAfor the entire economy contracted by 7.2 per cent, growth in
GVAfor agriculture maintained a positive growth of 3.4 per cent.
Source: Economic Survey 2020-21
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7. Year Natural
gas
Cement Crude oil Refinery
products
Steel Fertilizer Electricity Coal Overall
2019-20 -3.1 0.01 -5.9 -1.1 6.7 4.0 0.8 -5.4 0.3
2020-21 -12.1 -19.5 -6.0 -14.9 -19.4 3.8 -4.7 -2.6 -11.4
Eight Core Index: The monthly Index of Eight Core Industries is a production volume Index. It measures collective and individual performance
of production in selected eight core industries.
It was released by ministry of commerce and industries. It comprise 40.27 per cent of the weight of items included in the index of Industrial
production (IIP)
Index of Industrial production
(IIP) is an index for India which
details out the growth of various
sectors in an economy such as
mining, electricity and
manufacturing
It is compiled and published
monthly by the National Statistics
Office (NSO), Ministry of Statistics
and Programme Implementation.
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8. *Electricity, gas, water supply and utility services
Source: Ministry of statistics and programme Implementation Overall, industrial sectors
contributes to 25.8 per cent to
India’s GVA. 18
9. Source: Economic Survey 2020-21
Note: Q1 and Q2
The Industrial sector is
estimated to decline by 9.6 per
cent in 2020-21.
Within the sector highest
decline is estimated in
construction (12.6%) and
mining (12.4%)
The contribution of the Industrial
sector to the GVA (Gross Value
Added) is declined from 32.50 per
cent in 2011-12 to 25.80 per cent
in 2020-21
Effect of Covid-19 on Industrial sector
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10. Commodity group Share (Per
cent )
Growth (Per cent) Year over Year (YoY)
2019-20 2018-19 2019-20 2020-21 (April-
september)
Total Services Exports 100 6.60 2.50 -7.89
Travel 14.10 0.30 5.50 -73.49
Transportation 9.80 11.60 7.80 -2.34
Insurence 1.10 6.20 -8.70 -2.99
Software services 43.70 7.90 11.50 3.55
Business Services 18.80 4.70 16.90 2.48
Financial Services 2.30 -5.90 -2.60 -20.35
Communication 1.20 22.10 6.30 2.44
Total Services Import 100 7.30 1.80 -13.95
Travel 17.20 11.20 1.40 -55.09
Transportation 18.90 16.60 18.30 -25.90
Insurence 1.40 5.30 -2.90 -5.80
Software services 6.60 13.10 45.50 15.60
Business Services 36.50 10.30 16.00 4.22
Financial Services 2.30 -37.00 -16.30 94.80
Communication 1.00 18.40 14.70 3.24
Service trade performance by Sub-Sectors
Significant drop in foreign
tourist arrivals owing to the
mobility restrictions imposed
worldwide.
Slowdown in trade activity
and supply chain disruptions
led to the decline in
transportation recepits.
majority of
companies which
reported negative
software
had
revenue
growth in Q1 of FY2020-21,
have shown signs of rebound
in Q2 with positive sequential
growth.
Source: https://www.rbi.org.in/scripts/AnnualReportPublications.aspx?Id=30 25
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0
-20
-40
-60
-80
-100
Small trades and laburers Entrepreneurs Salaried employees Farmers
Total 153412893 253013193 40.82
STATES MGNRGA work
demand in
March2020
Rural job demand in
May 2020
Per cent raise in
demand
Bihar 12,44,491 16,94,496 26.55
Chhattisgarh 22,99,126 42,20,136 45.52
Andhra Pradesh 42,67,455 66,28,938 35.62
Gujrath 2,71,296 4,54,658 40.38
Madhya Pradesh 14,77,337 33,71,539 56.18
Maharashtra 7,13,164 12,27,708 41.91
Uttar Pradesh 17,40,211 49,34,269 64.73
Rajasthan 22,06,063 43,32,526 49.08
Other states/UTs 12,60,48,623 198284653 36.43
Source: nrega.nic.in 2020-21
Demand for Jobs under MGNREGA
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13. Source: Economic Survey 2020-21
Note: India’s Real GDP growth (2020) for Q1 and Q2 and Q3 is -23.9%, -7.5 % and 0.4% respectively.
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14. 88%
March 2020 (Rs. 1,92,800 crore)
8%
4%
Health RevenueForgone Poor (Food/Livelihood)
30%
6%
37%
12%
15%
May-June 2020 (Rs. 11,85,561 crore)
Agriculture(crdit/infra)
Demand boosting
Liquidity support to firms
Food/livelihood
Other liquidity measures
51%
49%
October 2020 (Rs. 73,00 crore)
Investmentboosting
Consumption boosting
59%
0
7
%
%
25%
6%
3%
November 2020 (Rs. 2,65,080 Crore)
Liquiditymeasures
Investingboosting
Housing sector
Health
Agriculture
Livelihood
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15. The risk of a global recession due to COVID-19 in 2020 and 2021 would be extremely high, as it has been
observed globally that the shutdown of all economic activities—production, consumption and trade-to
control the spread of COVID-19 is imminent.
The nature of shutdown is unique in case of COVID-19 due to a supply shock, a demand shock and a
market shock. The recovery in economy depends on the timings and magnitude of government support as
well as the level of corporate debt and how the companies and markets cope with lower demand.
Government assistance to those most in need (largely constituted of unorganised sector, migrants and
marginalised communities) is a critical measure to save many lives.
However, every crisis brings about a unique opportunity to rethink on the path undertaken for the
development of a human being, community and society.
The COVID-19 pandemic has a clear message for the Indian economy to adopt sustainable developmental
models, which are based on self-reliance, inclusive frameworks and are environment friendly.
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