India’s Economy Shrinks by 23.9%

New Delhi: Union Finance and Corporate Affairs Minister Nirmala Sitharaman carrying budget papers wrapped in a red cloth, accompanied by Union MoS Finance and Corporate Affairs Anurag Thakur and other officials of the Finance Ministry, leaves for the Parliament to present the Union Budget 2020-2021, in New Delhi on Feb 1, 2020. (Photo: IANS) by .
New Delhi: Union Finance and Corporate Affairs Minister Nirmala Sitharaman carrying budget papers wrapped in a red cloth, accompanied by Union MoS Finance and Corporate Affairs Anurag Thakur and other officials of the Finance Ministry, leaves for the Parliament to present the Union Budget 2020-2021, in New Delhi on Feb 1, 2020. (Photo: IANS)
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India’s Q1FY21 GDP contracts by 23.9% … reports Asian Lite News

New Delhi: Union Finance ad Corporate Affairs Minister Nirmala Sitharaman addresses a press conference in New Delhi, on March 26, 2020. (Photo: IANS) by .
New Delhi: Union Finance ad Corporate Affairs Minister Nirmala Sitharaman addresses a press conference in New Delhi. (Photo: IANS)

Pandemic Covid-19 induced economic turbulence along with measures to curb its outbreak, heavily dented India’s economy and plunged the country’s GDP to (-) 23.9 per cent during the first quarter (Q1) ended June 2020-21.

Though not comparable, the Gross Domestic Product (GDP) had grown by 5.2 per cent in the corresponding quarter of FY2019-20.

In the quarter just preceding Q1FY21, the economic growth was at 3.1 per cent.

The country had observed mobility restrictions as mandated under the lockdown measures for the better part of the first quarter of FY21.

It was only on June 1 that partial unlock measures were implemented.

However, a contraction at this scale is unprecedented and never been witnessed.

The current practice of quarterly series data dissemination began in the late 1990s.

Commenting on the Q1FY21 GDP data, the Chief Economic Adviser to the Government Krishnamurthy Subramanian: “As the world economic outlook has highlighted, the fraction of countries, where GDP per capita would decrease is the highest since 1870, so once in a one and a half century event, which is what we are going through.”

“India was also in a ‘Lockdown’ all through the April-June quarter with the majority of economic activities being restricted, so this trend is along the expected lines.”

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