High year-on-year GDP is essential to meet the growing needs of the large population of a country like India. GDP growth rate numbers help the government to frame policies and also guide investors to make better decisions related to their investments.
A constantly rising GDP is bound to have a positive effect on poverty, healthcare, literacy and employment. In India, contributions to the GDP are tracked from three broad sectors, namely agriculture & allied services, industry, and services. Each of these sectors employs a huge number of people. In the 21st century, over the past several years India has witnessed a large, growing middle class, with millions of people being lifted out of poverty. This was reflected in the rising annual per capita GDP. However, in recent months, the global Covid-19 pandemic has severely hit countries worldwide, including India.