• Privacy Policy
  • About Us
  • Contact Us
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
Cartographeum
No Result
View All Result

India’s GDP contracts by record 23.9% in Q1

Juliet Woodard by Juliet Woodard
August 31, 2020
Home Business
Share on FacebookShare on Twitter

This is the sharpest contraction since quarterly figures started being published in 1996 and worse than what was expected by most analysts.

India’s economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment. The GDP contraction in the world’s fifth-largest economy compared with 3.1% growth in the preceding January-March quarter and 5.2% expansion in the same period a year back, according to official data released on Monday. This is the sharpest contraction since quarterly figures started being published in 1996 and worse than what was expected by most analysts. While the pandemic caused historic GDP contractions in economies around the world, the situation in India has been made worse by more than 78,000 new infections a day and total cases topping 35 lakh — behind only the US and Brazil. Russia’s economy contracted by a lesser-than-expected 8.5% in April-June but China grew by 3.2% in the quarter. China had recorded a contraction of 6.8% in January-March when the coronavirus pandemic was at its peak in that country. Russia had grown by 1.6% in the first quarter. The US economy shrank at a dizzying 32.9% annual rate in the April-June quarter — by far the worst quarterly plunge ever — when the viral outbreak shut down businesses, throwing tens of millions out of work and sending unemployment surging to 14.7%. Chief Economic Adviser K V Subramanian told PTI that the first-quarter economic performance was “driven primarily due to an exogenous shock that has been felt globally.” The World Economic Outlook, he said, has highlighted countries across the globe where GDP per capita would decrease the most since 1870 — once in one-and-a-half century event. “Which is what we are going through,” he said. During April-June, agriculture was the lone bright spot, growing by 3.4%.Also read: Borrow from RBI to bridge GST gap, Centre tells States Financial services — the biggest component of India’s dominant services sector — shrank 5.3%, while trade, hotels, transport and communication declined 47%. Manufacturing shrank 39.3%, construction contracted 50.3%, mining output fell 23.3%, and electricity and gas segment dropped 7%.Also read: Centre can’t be held liable for revenue loss in pandemic, Himanta told GST CouncilMr. Subramanian said the economy is “experiencing a V-shaped recovery” after the lockdown eased. But the Reserve Bank of India (RBI) in its annual report last week said the economy is likely to contract even in the second quarter (July-September). Finance Minister Nirmala Sitharaman has already warned of a contraction for the full year because of the “act of God”. India’s road to recovery appears a long and hard one, particularly after a mix of monetary and fiscal measures — 115 basis points interest rate cuts and a ₹20 lakh crore stimulus package — has not so far been able to prop up the economy. Economists expect growth to rebound only in the next year, mostly led by pent-up domestic demand and pick up in the manufacturing and services sectors after the easing of lockdown. While the nationwide lockdown wiped away economic activity for almost half of the first quarter of 2020-21 fiscal, local lockdowns by several states thereafter and continuing restrictions on sectors such as hospitality, transport, and education have dented revival prospects. Analysts say millions of workers lost their jobs and businesses suffered due to the lockdown, but the government has refuted any large-scale unemployment. Even before the pandemic struck, the Indian economy was in the midst of a slowdown as a crisis in the shadow bank sector hurt new loans and took a toll on consumption, which accounts for some 60 per cent of the country’s GDP. The GDP growth had slowed to 4.2% in 2019-20 fiscal (April 2019 to March 2020) from 6.1% in the previous year and 7% in 2017-18. According to the data released by the National Statistical Office (NSO), “GDP at Constant (2011-12) Prices in Q1 of 2020-21 is estimated at ₹26.90 lakh crore, as against ₹35.35 lakh crore in Q1 of 2019-20, showing a contraction of 23.9% as compared to 5.2% growth in Q1 2019-20.” “With a view to containing the spread of the Covid-19 pandemic, restrictions were imposed on the economic activities not deemed essential, as also on the movement of people from March 25, 2020. “Though the restrictions have been gradually lifted, there has been an impact on the economic activities as well as on the data collection mechanisms,” it added. It also said the timelines for filing statutory returns were extended by most regulatory bodies. “In these circumstances, the usual data sources were substituted by alternatives like GST, interactions with professional bodies, etc. and which were clearly limited,” it said.

You have reached your limit for free articles this month.
To get full access, please subscribe.
Already have an account ? Sign in

Show Less Plan

Subscription Benefits Include

Today’s Paper
Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Faster pages
Move smoothly between articles as our pages load instantly.

Unlimited Access
Enjoy reading as many articles as you wish without any limitations.

Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.

Personalised recommendations
A select list of articles that match your interests and tastes.

Briefing
We brief you on the latest and most important developments, three times a day.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.

Tags: coronavirus-related lockdownsGDP contractionsGDP contractsGross domestic productofficial data on GDPUnion Finance Minister Nirmala Sitharaman
Juliet Woodard

Juliet Woodard

Next Post
Airtel Expands ‘Free Data Coupon’ Offer to Rs. 289, Rs. 448, Rs. 599 Prepaid Recharge Plans

Airtel Expands ‘Free Data Coupon’ Offer to Rs. 289, Rs. 448, Rs. 599 Prepaid Recharge Plans

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

Apple Puts Major Taiwanese Supplier Pegatron on Probation Over Labour Laws Violation

Apple Puts Major Taiwanese Supplier Pegatron on Probation Over Labour Laws Violation

November 11, 2020
Can Your Home Keep You Healthy – Century 21®

Can Your Home Keep You Healthy – Century 21®

August 20, 2020

Trending.

Understanding Emergency Rental Assistance For Landlords And Tenants

Understanding Emergency Rental Assistance For Landlords And Tenants

January 27, 2021
Facebook Bars Deceptive Campaign From Pro-Trump Group

Facebook Bars Deceptive Campaign From Pro-Trump Group

October 10, 2020
Nirmala Sitharaman press meet live | Centre announces Atmanirbhar Bharat Rozgar Yojana for formal sector

Nirmala Sitharaman press meet updates | Finance Minister announces 12 schemes to boost economy

November 12, 2020
Call of the mall – The Hindu

Call of the mall – The Hindu

October 16, 2020
Missing Middle Housing Is A Huge Opportunity Offering Resilient Investment And High Demand

Missing Middle Housing Is A Huge Opportunity Offering Resilient Investment And High Demand

February 17, 2021

Cartographeum brings you the latest information about Tech,Real Estate & Business.

Follow Us

Categories

  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
  • Uncategorized

Tags

Amazon Apple Watch 2 Bombay stock exchange BSE Business Buying Guides china closing trade coronavirus Covid COVID-19 currency dollar rate economy Finance Ministry foreign exchange forex gold india indian economy Indian stock market Industry iOS 10 lockdown luxury homes market and exchange markets nifty Nirmala Sitharaman NSE oil pandemic Playstation 4 Pro rbi real estate Reserve Bank of India rupee rupee rate Rupee value rupee vs dollar sensex Sillicon Valley stock exchange Stocks USD

Recent News

Brotherly Bonds Through Selling San Diego Real Estate

Brotherly Bonds Through Selling San Diego Real Estate

March 6, 2021
How Your ‘Free’ Buyer’s Agent Increases The Cost Of Homeownership (And What Homebuyers Can Do)

How Can Landlords Prepare For 2021?

March 5, 2021
  • Privacy Policy
  • About Us
  • Contact Us

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Review
  • Computers
  • Gear

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.