GDP to shrink 16.5% in 1st quarter: SBI report

Mumbai, August 17

State Bank of India’s analysis report Ecowrap expects the nation’s GDP to contract by 16.5 per cent throughout the first quarter of the present fiscal.

Rs 27,000 loss

  • Top 10 states accounted for 73.8% of the entire loss
  • Maharashtra contributed 14.2%, TN 9.2% and UP 8.2%
  • All-India per capita loss round Rs27,000, SBI report stated

In precept, income decline of listed firms has been far outstripped by price rationalisation. SBI report

In May, Ecowrap had estimated Q1 FY21 GDP contraction at over 20 per cent and now pegs it at a lot decrease contraction of 16.5 per cent for the quarter, “though with the relevant caveats in the current uncertain scenario”, the analysis report launched on Monday said.

It stated degrowth in company GVA (higher than anticipated outcomes of some monetary and non-financial firms) has been considerably higher than income degrowth in Q1 FY21 so far as the outcomes of the listed firms are involved.

So far, round 1,000 listed entities have introduced their outcomes for the primary quarter. The outcomes point out greater than 25 per cent decline in topline and greater than 55 per cent decline in bottomline.

However, it’s fascinating to say that the decline in company GVA (gross worth added) is just 14.1 per cent, it stated. “In principle, revenue decline of listed companies has been far outstripped by cost rationalisation, thereby not impacting margins,” the report stated.

It stated in July and August, coronavirus considerably penetrated the agricultural areas. The proportion of instances in rural districts to complete new instances has risen to 54 per cent in August. Also, the variety of rural districts with lower than 10 instances has decreased considerably. Andhra Pradesh and Maharashtra have been impacted extra severely with growing coronavirus penetration in rural areas. — PTI

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