GDP Q1 Data: GDP growth of India Falls in 2020-21

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The COVID-19 pandemic has harm the Indian economy which gets reflects with the diminishing GDP growth of India. The Lockdown, which was imposed on 25th March 2020 in India, has given a huge difficulty to the key 8 infrastructure sectors. Based on the data released by the government, multiple sectors has now almost brought the operations in the key sectors to start. In this article, we discuss about GDP growth of India and its impacts.

India GDP Q1 Data 2020

For the first time in 40 years, the GDP of India registered negative growth. GDP growth of India for the April-June quarter (Q1) slipped by a sharp 23.9 per cent, as per provisional assessments released by the Ministry of Statistics and Programme Implementation stated on Monday. 

Economists have analysed and stated that more critical situation has yet to come, which decreases a recession along with the GDP rate of India in 2020.

Also, the June GDP data is the worst recession in the history of the Indian economy mainly because the central government on March 25 had ordered a complete lockdown of most of the manufacturing and service areas owing to the cases of COVID-19. 

Diminishing GDP growth of India

As per the data by the National Statistical Office (NSO), all essential sectors except agriculture witnessed contractions, 

  • Construction observing a drop of a huge 50.3 per cent. 
  • Manufacturing industry falls to 39.3 per cent fall. 
  • Electricity, gas, water supply and other essential services slipped 7 per cent. 
  • Trade, hotels, transport, communication and broadcasting services to declined 47.0 per cent.
  • Moreover, the agriculture, forestry and fishing industry observed extension of 3.4 per cent in the June quarter, the data showed.

Note- the GDP growth of India for the preceding January-March quarter (Q4) of 2019-20 had observed the extension of 3.1 per cent.

To be on the safer side, most of the businesses have resumed their operation on a large scale. The financial experts have assumed that by re-opens the economy in phases, the government spending, and festive season spending expected to help the growth rate in the positive territory going forward. By this, the GDP growth of India will assume to improve in FY 2020-21.

We hoped that the ongoing efforts of the government are going to revive the economy very soon.

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