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||45.0 (Apr22)||43.0||44.0|
|Broad Money Growth 2||11.6 (Feb22)||11.6||13.3|
|Headline Inflation Rate 3||13.4 (Apr22)||12.7||11.1|
|Industrial/ Manufacturing Production Growth Rate 3||-1.2 (Oct21)||1.6||21.9|
|Merchandise Export Growth 3||17.7 (Mar22)||17.7||37.1|
|Exchange Rate Index 4||308.8 (Apr22)||300.6||256.1|
|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.|
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