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Budget 2021

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Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Trade, transport and tourism plunge 15.6% from 47% as GDP sees recovery

According to the NSO data released on Friday, the gross value added (GVA) from trade, hotel, transport, communication & services related to broadcasting fell by 15.6 percent at constant prices in July - September quarter year-on-year against a 7 percent year-on-year decline in the overall real GVA for the second quarter.

November 27, 2020 / 08:22 PM IST

Trade, hotel, transport, communication & services related to broadcasting reported a much narrower deceleration in the July- September quarter as per the data released by National Statistical Office (NSO). 

Trade, hotel, transport, communication & services related to broadcasting reported a contraction of 15.6 percent in Q2.

The sector reported a significantly narrower contraction due to easing of the Covid 19 induced lockdown in the economy. 

In the April-June quarter of 2020-2021, trade, hotels, transport, communication & services related to broadcasting reported a contraction of 47 percent.

The fall in numbers is visible in the country’s economy that shrank by 7.5 percent.

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 According to the NSO data released on Friday, the gross value added (GVA) from trade, hotel, transport, communication & services related to broadcasting fell by 15.6 percent at constant prices in July - September quarter year-on-year against  a 7 percent year-on-year decline in the overall real GVA for the second quarter.

GVA at current prices for trade, hotel, transport, communication & services related to broadcasting fell  10.3 percent year-on-year during the July September quarter against a 4.2 percent decline for the overall nominal GVA. 

The hospitality industry has been the worst impacted due to the Covid19 pandemic and related lockdown that forced people to stay at home. Furthermore, the restrictions also resulted in drop in foreign and domestic travel.

According to World Travel and Tourism (WTTC), the tourism industry contributed 9 percent to India's GDP in 2019.  WTTC also estimated the revenue loss of $17 billion for India in 2020.

A report on the Covid 19 impact on Indian hotels sector by HVS Anarock estimated a Rs.90,000 crore decline.

“Sept Qtr GDP at -7.5% is much better than our upwardly revised -8.4% YoY. The uptick is driven by positive growth in manufacturing which was anticipated by us, but the sharp improvement in ‘trade, hotels & transportation’ is a surprise. Bunching up of demand in September Qtr has helped lift YoY growth," Prithviraj Srinivas, Chief Economist, Axis Capital said.

 

 

 
Shreeja Singh
first published: Nov 27, 2020 07:51 pm

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