Categories: Business

India GDP growth plummets to negative 20 percent due to Covid

Sharp drop in first quarter due to Corona crisis

new Delhi. The reason for Corona in the Indian economy has been the sharpest quarterly decline so far. According to the data released today, there has been a decline of 23.9 percent in GDP during the quarter ended in June. With this, GVA i.e. Gross Value Added has declined by 22.8%. This decline in GDP is the fastest decline recorded in any quarter so far. Based on the constant price (2011-12), GDP in the first quarter of 2020-21 stood at Rs 26.9 lakh crore. The figure stood at Rs 35.35 lakh crore in the first quarter of 2019-20. That is, it has fallen by 23.9 percent. This has led to GDP growth below 5 per cent for the last 3 quarters.

According to the data released by the NSO, there was a decline of 38.1 per cent in the industry, 20.6 per cent in the service sector, 39.3 per cent in the manufacturing sector and 47 per cent in the hotel during the first quarter. At the same time, Agri sector grew by 3.4 percent.

During the same quarter, the most profound impact of the Corona crisis was seen on business activities, the impact of which is now in the form of statistics. Several sectors witnessed almost zero activity during the quarter. At the same time, no sector except agriculture remained in which the business activities could reach even before the epidemic level.

The decline in GDP is not unexpected, from the government to the foreign institutions had already predicted a sharp decline in GDP, although the estimates were different on how much will come down. The Reserve Bank had given an estimate of the decline, although it did not give an estimate of how much the fall would be. At the same time, estimates from the country's private financial institutions to foreign experts were in the range of 12 per cent to 40 per cent fall for the June quarter.

In the same quarter last year, GDP had grown by 5 percent. Which was at the time of 6 years low. At the same time, the Indian economy had shown a growth of 3.1 percent in the last quarter, which was the lowest in the last 8 years. In the year 2019-20, GDP growth was at the level of 4.2 percent. At the same time, the GDP growth in the year 2018-19 was 6.1%. That is, the Indian economy has been under pressure in the recent past. Which continues to grow with the Corona crisis. GDP figures include agriculture, manufacturing, electricity, gas supply, mining, construction, trade and communication, insurance, business service, finance and public services.

This post was published on August 31, 2020 6:40 pm

Content Team

Recent Posts

Ban on gaming apps hopes for opportunity for domestic sector

Photo: MEDIATEK online gaming new Delhi. The government has banned 118 apps keeping in mind the security of the country.…

India august gold imports double to hit 8 months peak says source

Photo: TIMESOFINDIA gold import at 8 months high new Delhi. The economy is now looking forward to a gradual recovery.…

Coal India Q1 profit plunges 55 percent YoY

Photo: GOOGLE Coal India Q1 result new Delhi. Coal India's profit fell 55 per cent in the first quarter to…