GSDP of all states to contract in 2020-21: Ind-Ra

Contraction to be in range of 1.4%-14.3%

by Nidhi Bhati

India Ratings and Research (Ind-Ra) expects all states to witness a steep decline in their gross state domestic product (GSDP) for 2020-21 due to the impact of Covid-19 induced lockdown on economic activities. The contraction will be in the range of 1.4 per cent to 14.3 per cent. Ind-Ra further observed that since agricultural activities were less impacted, the states having a higher share of agriculture are expected to have suffered less compared to the one where the share of agriculture is low. Gujarat, Assam, Goa and Sikkim are likely to see double-digit contraction in GSDP. Among the major states, those likely to be most impacted over the fiscal were Karnataka, Jharkhand, Tamil Nadu, Kerala and Odisha, whereas the least affected would be Madhya Pradesh, Punjab, Bihar, Andhra Pradesh and Uttar Pradesh.