Abstract

The COVID-19 pandemic has profoundly affected the global economy, with India experiencing a significant contraction in its Gross Domestic Product (GDP) during the fiscal year 2020-21. This report analyses the macroeconomic impact of the pandemic on Chhattisgarh’s economy, highlighting a GDP contraction of 22.8% and 7.5% in the first two quarters, respectively. Key sectors such as construction, manufacturing, trade, and transport faced severe declines of 50.3%, 39.3%, and 47%, while agriculture recorded a modest growth of 3.4%. The findings suggest that the structural composition of a state’s economy influences its vulnerability to economic shocks, necessitating a nuanced assessment of COVID-19’s impact.

This study further estimates revenue losses for the Government of Chhattisgarh and examines sectoral impacts on Gross State Domestic Product (GSDP). It also explores expenditure trends, emphasising the need for sustained investment in social protection and economic recovery initiatives. The report concludes with recommendations for enhancing revenue generation and prioritising expenditures in critical sectors to mitigate economic shortfalls and foster recovery in the post-pandemic landscape.

United Nations Children’s Fund (UNICEF), Jha, J., Rao, M. B. V., Purohit, A., Yareseeme, A. S., V, S. M., Sundar, S., & Kumar, A. (2021). Macro-Economic Impact of Covid-19 on the Economy of Chhattisgarh: Report I.