New Delhi: As the country is going through a tough time because of the coronavirus pandemic, the Ministry of Statistics and Programme Implementation on Thursday issued date and said the Indian economy is estimated to contract 7.7 per cent in 2020-21 as compared to 4.2 per cent growth in the previous fiscal. The ministry said it is mainly on account of the impact of the COVID-19 pandemic.Also Read - Retail Cement Prices May Touch Record High In FY22 - Report

As per the first advanced estimates of the national income released by the National Statistical Office (NSO) on Thursday, there was contraction in almost all sectors with the exception of agriculture. Also Read - India's GDP Expands 8.4 Per Cent in July- September Quarter as Covid Restrictions Ease

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“Real GDP or GDP at Constant Prices (2011-12) in the year 2020-21 is likely to attain a level of Rs 134.40 lakh crore, as against the Provisional Estimate of GDP for the year 2019-20 of Rs 145.66 lakh crore… The growth in real GDP during 2020-21 is estimated at -7.7 per cent as compared to the growth rate of 4.2 per cent in 2019-20,” it said.

Notably, the 7.7 per cent contraction in the GDP is a big blow to the economy of the country as compared with the 4.2 per cent growth recorded in 2019-20.

As per the advanced estimates of the national income released by the National Statistical Office (NSO), there was a contraction is all the sectors except agriculture. However, the manufacturing sector has been predicted to annually contract 9.4 per cent.

Issuing the state, the ministry said that the lockdown and restrictions imposed in the current fiscal has affected the economy.

It must be recalled that the economy shrank by a staggering 23.9 per cent in the first quarter of 2020-21 as the entire country went under a strict lockdown to contain the spread of coronavirus. However, it recovered in the second quarter but contracted 7.5 per cent.

On the other hand, the Reserve Bank of India had recently projected economy to contract 7.5 per cent in FY21, revising its earlier estimate of 9.5 per cent contraction.