India GDP Growth For FY20 Revised To 4% From Earlier Estimate Of 4.2%

The Indian economy grew at a slightly slower pace last year than projected earlier.

GDP growth in 2019-20 stood at 4% compared with the provisional estimate of 4.2%, according to the first revised estimates released by the Ministry of Statistics and Programme Implementation on Jan. 29.

Nominal GDP grew by 7.8% compared with the provisional estimate of 7.2%.

Growth of gross value added was revised to 4.1% for the last fiscal compared with the provisional estimate of 3.9%.

For 2018-19, GDP growth was revised to 6.5% from the earlier estimate of 6.1%. This is the second revised estimate for this year.

This fiscal, the economy is forecast to contract by 7.7%—the steepest since independence.

The first revised estimates are compiled using industry-wise detailed information instead of the benchmark indicator method used to compute provisional estimates. Provisional estimates for 2019-20 were released in May 2020.

Savings And Investments

In 2019-20, savings rate as a percentage of GDP rose, according to the first revised estimates.

• Gross savings as a percentage of gross national disposable income for 2019-20 is estimated at 30.9% against the revised estimate of 30.1% for 2018-19.
• Gross capital formation-to-GDP ratio fell to 32.2% for 2019-20 against the revised estimate of 32.7% in 2018-19.