GDP Q1 Data: India’s economic growth slips to -23.9%, first contraction in 40 years
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The first quarter saw an unprecedented closure of shops, markets, and industries, which forced the wheels of the economy to a standstill.
For the first time in 40 years the GDP of India registered a negative growth. India’s economic growth slips to -23.9% in the first quarter (April-June) of 2020-21.
The first economic contraction since 1980, and maiden quarterly GDP fall on record, follows limited activity during the June quarter amid lockdowns to control the spread of the coronavirus pandemic.
The first quarter saw an unprecedented closure of shops, markets, and industries, which forced the wheels of the economy to a standstill.
Except for agriculture, almost all the corners of the economy were severely hit. Though the government had announced a series of reforms and schemes to provide a fillip to the economy, lockdown restrictions and increasing cases of coronavirus kept the economic activity grounded in the first quarter.
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 government had imposed a nationwide lockdown on March 25 to curb the spread of coronavirus infections.
The Centre began easing the lockdown for certain economic activities from April 20 onwards.
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.
(With inputs from Reuters)