The economy contracted by 0.4% in fiscal year 2020 (FY2020, ending 30 June), after growing by 1.9% in FY2019, due to COVID-19 restrictions and supply chain disruptions. Industry contracted by 2.6% after falling 2.3% in FY2019 as pandemic-related shocks exacerbated the impact of a rupee depreciation and fiscal tightening. Agriculture helped mitigate some of the economic decline, growing by 2.7% in FY2020, up from 0.6% in FY2019. On the demand side, private consumption (comprising 79% of GDP) contracted by 3.7% in FY2020, after expanding 2.9% in FY2019. While imports declined by 18.2% due to lower oil prices and depressed domestic demand, exports fell by 7.2% due to lower global demand. GDP is forecast to grow by 2.0% in FY2021 and by 4.0% in FY2022 as COVID-19 related restrictions ease, triggering a broad recovery.
|Composite Stock Price Index 1||47.0 (Jul21)||48.0||36.0|
|Broad Money Growth 2||15.2 (Jul21)||15.2||16.2|
|Headline Inflation Rate 3||8.4 (Aug21)||8.4||8.2|
|Industrial/ Manufacturing Production Growth Rate 3||23.0 (Mar21)||5.2||9.6|
|Merchandise Export Growth 3||41.5 (Aug21)||41.5||16.9|
|Exchange Rate Index 4||274.2 (Aug21)||267.0||280.2|
|1 Monthly average, local index.|
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
|Source: Bloomberg LP; CEIC database; Federal Bureau of Statistics.|
Initiatives / FTAs
ADB Working Paper Series0 items
on Regional Economic
Studies and Research