COVID19 lockdowns crush Indian economy in April-June quarter of 2020

India’s National Statistical Office has released the estimates of Gross Domestic Product for April-June quarter of 2020-21 GDP at Constant 2011-12 Prices in Q1 of 2020-21 is estimated at INR 26.90 lakh crore, as against INR 35.35 lakl crore in Q1 of 2019-20 showing a contraction of 23.9 percent as compared to 5.2 percent growth in QI 2019-20. The April-June quarter GDP data is the worst contraction in the history of the Indian economy since Independence but isn’t a surprise.. Widespread and repeated lockdowns have resulted in this sharp fall. Construction contracting 50.3 per cent and Trade, hotel, transport, and communication contracting 47 per cent are the two negative surprises. Investments too contracted 47.1 per cent. While the rural economy has offset the slowdown in urban areas in Q1 to some extent, rural recovery is unlikely to support such pace in subsequent quarters. One reason for this is that Covid-19 has started to penetrate rural areas at a fast pace since July. Double digit contraction in GDP remains likely also during the current quarter with the headwinds of fresh lockdowns weighing on economic recovery.

Read more at COVID19 Lockdowns Crush Indian Economy in April-June Quarter of 2020.

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