JOIN USCoronavirus hits India's economy to the tune of Rs 30 lakh crore so far: Report
COVID-19 has so far hit India’s economy to the tune of over Rs 30 lakh crore, with top five states including Maharashtra and Karnataka accounting for close to 50 per cent of total gross domestic product loss, says a new report, days after the government's Rs 21 lakh crore stimulus package got mired in controversy over its effectiveness.
The losses so far are close to 43 per cent more than the Centre’s stimulus package.
The state-wise analysis indicated that the top five states – Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh and Karnataka accounted for 48.7 per cent of the overall economic loss so far.
While Maharashtra accounted for the maximum 15.6 per cent of the total losses, Tamil Nadu accounted for 9.4 per cent, Gujarat (8.6 per cent), Uttar Pradesh (8.3 per cent) and Karnataka (6.7 per cent). In rupee terms, these five states lost nearly Rs 11 lakh crore.
“We have calculated the district-wise, zone wise loss in state GDP for each state and found that total GSDP (gross state domestic product) loss due to COVID-19 for states stands at Rs 30.3 lakh crore, which is 13.5 per cent of total GSDP,” a State Bank of India research report said.
It said the loss is maximum (around 50 per cent) in the red zones and where almost all the big districts of India are located. The combined loss of Orange and Red zones is around 90 per cent of the total loss.
The loss in Green zones is the least as 80 per cent of the population in this zone is located in rural areas which are almost open for all activities. It said the losses till now indicate that the GDP growth in 2020-21 would now be around (-)6.8 per cent.
Statewise analysis also showed the top 10 states which also included Delhi, Rajathan, Telangana, Andhra Pradesh and West Bengal together accounted for nearly 75 per cent of the total GDP loss.
The report estimated a loss of Rs 10.4 lakh crore in the form of net indirect taxes in the current financial year ending March 31, 2021.