New Delhi | Jagran Business Desk: India's economy grew 3.1% in the January-March quarter compared with the same period last year, which is the slowest growth in at least last eight years, official data showed on Friday, reflecting the partial impact of the coronavirus pandemic prevailing across the globe.

The GDP growth was much better than the economists' had estimated, however the numbers are still lower than an expansion of 4.7 per cent estimated in the previous quarter. The GDP growth slipped to a 7-year-low of 4.7 in the previous quarter (October- December) wieghed by the contraction in the manufacturing sector. 

"In view of the global COVID-19 pandemic and consequent nationwide lockdown measures implemented since March 2020, the data flow from the economic entities has been impacted," said the Ministry of Statistics and Programme Implementation in a statement. 

In 2019-20, the Indian economy grew by 4.2 per cent against 6.1 per cent expansion in 2018-19. The government imposed lockdown on March 25 to combat COVID-19. However, slowing down of business activities across the world in January-March impacted the Indian economy.

The Reserve Bank had pegged the GDP growth for 2019-20 at 5 per cent as projected by the NSO in its first and second advance estimates released earlier this year in January and February respectively. 

On a sequential basis, the quarterly growth rate has progressively come down from 5.2 per cent in Q1 of 2019-20 to 4.4 per cent in Q2 and 4.1 per cent in Q3. Last fiscal, the Indian economy faced a severe demand slowdown on account of high GST rates, farm distress, stagnant wages and liquidity constraints. This time around, the national lockdown implemented to curb the Covid-19 outbreak has delt a severe blow to the economy. 

The Governor of the Reserve Bank of India, Shaktikanta Das had on last week said that the Gross Domestic Product (GDP) growth of the country will remain in the negative territory in the Financial Year 2020-21.

The RBI governor cited the COVID-19 crisis and the lockdowns for the impact on the economy and also said that uncertainty surrounding the pandemic continues to loom creating confusion among the businesses.  However, he expressed confidence of the gradual revival of economic activities and increase of demand in the second half of the FY2020-21.

 

(With Agencies Inputs)

Posted By: Talib Khan