State Bank of India expects India’s GDP to contract 16.5 percent in the April-June quarter from the earlier expected 20 percent. In its earlier report in May, Ecowrap had estimated Q1 FY21 GDP contraction at over 20 percent and now pegs it at much lower “though with the relevant caveats in the current uncertain scenario.” It said degrowth in corporate GVA (better than expected results of some financial and non-financial companies) has been significantly better than revenue degrowth in Q1 FY21 as far as the results of the listed companies are concerned. So far, around 1,000 listed entities have announced their results for the first quarter. The results indicate more than 25 percent decline in topline and more than 55 percent decline in bottomline. However, it is interesting to mention that the decline in corporate GVA (gross value added) is only 14.1 percent, it said. State-wise analysis indicates that top 10 states accounted for 73.8 percent of total GDP loss, with Maharashtra contributing 14.2 percent of total loss followed by Tamil Nadu (9.2 percent) and Uttar Pradesh (8.2 percent), it said. Subsequently, the per capita loss for all India is around Rs 27,000 with states like Tamil Nadu, Gujarat, Telangana, Delhi, Haryana, Goa, exhibiting loss of more than Rs 40,000 per person in FY21, the report stated.

(Moneycontrol)