GDP plummets by record 23.9 per cent in June quarter as COVID-hit economy pushes India into recession
New Delhi | Jagran Business Desk: In what comes as official announcement of India entering a state of recession, the GDP data released on Monday showed a drop of 23.9 per cent in the Gross Domestic Product (GDP) in the April-June quarter of current financial year (FY 2020-21).
"The GDP at constant (2011-12) prices in Q1 of 2020-21 is estimated at Rs 26.9 lakh crore as against Rs 35.35 lakh crore in Q1 of 2019-20, showing a contraction of 23.9 per cent as compared to 5.2 per cent growth in Q1 2019-20," said the Ministry of Statistics and Programme Implementation in a statement.
"The quarterly gross value added at basic price at constant (2011-12) prices for Q1 of 2020-21 is estimated at Rs 25.53 lakh crore as against Rs 33.08 lakh crore in Q1 of 2019-20, showing a contraction of 22.8 per cent."
The gross domestic product (GDP) had expanded by 5.2 per cent in the corresponding April-June period of 2019-20, according to data released by the National Statistical Office (NSO).
The GDP contraction during the April-June quarter - worst since the country started reporting quarterly GDP data in 1996 - comes in the quarter which saw the over two-month-long lockdown to contain the spread of coronavirus which brought the economy to a standstill.
Most rating agencies had projected contraction in India's GDP for the first quarter of 2020-21. China's economy grew by 3.2 per cent in April-June after recording a decline of 6.8 per cent in January-March 2020.
According to leading economists, the measures to curb the pandemic heavily dented manufacturing, services and other sectors apart from agriculture during the quarter. It was only on June 1 that partial unlock measures were implemented. However, a contraction at this scale has not been witnessed since the quarterly series began in the late 1990s.
India's FY20 GDP had declined to 4.2 per cent from 6.1 per cent in FY19, the slowest in the last 11 years. On a sequential basis, the quarterly growth rate has progressively declined from 5.2 per cent in Q1 of 2019-20 to 4.4 per cent in Q2, 4.1 per cent in Q3 and 3.1 per cent in the last quarter of 2019-20.
Posted By: Abhinav Gupta