New Delhi: What economic experts were predicting became a reality today. The Indian economy registered negative growth for the first time after Covid-19 outbreak but the scale of fall in GDP growth is astounding. The economy has contracted by 23.9% in Q1 i.e. – April – June quarter.
This fall in economic growth apparently comes on back of Coronavirus-induced lockdown and disruptions as it impacted businesses and livelihoods of people despite government announcing monetary support of Rs 21 lakh crore.
This figure truly signifies the impact of Coronavirus on suppressing economic growth. This is sharp contrast to previous Quarters when growth rate was 3.2% in previous quarter while 5.2% in quarter that ended on June 30, 2019.
“The GDP at constant (2011-12) prices in Q1 of 2020-21 is estimated at Rs 26.9 lakh crore as against Rs 35.35 lakh crore in Q1 of 2019-20, showing a contraction of 23.9 per cent as compared to 5.2 per cent growth in Q1 2019-20,” said the Ministry of Statistics and Programme Implementation in a statement.
“The quarterly gross value added at basic price at constant (2011-12) prices for Q1 of 2020-21 is estimated at Rs 25.53 lakh crore as against Rs 33.08 lakh crore in Q1 of 2019-20, showing a contraction of 22.8 per cent.”
The government and Reserve Bank of India have been prompt to take measures for mitigating the impact of pandemic on economy by rolling out stimulus packages, reforms and interest rate cuts.
However, the revival is expected to take time as there is still high uncertainty regarding COVID-19 cases across the country.
