GDP growth slips to 3.1% in Q4 as COVID-19 further weakens sluggish demand

New Delhi: The Indian economy grew by 3.1 per cent in January to March quarter (Q4 FY20) as COVID-19 pandemic further compressed consumer demand and private investments, government data showed on Friday.

“In view of the global COVID-19 pandemic and consequent nationwide lockdown measures implemented since March 2020, the data flow from the economic entities has been impacted,” said the Ministry of Statistics and Programme Implementation in a statement.

“GDP at constant (2011-12) prices in Q4 of 2019-20 is estimated at Rs 38.04 lakh crore as against Rs 36.9 lakh crore in Q4 of 2018-19, showing a growth of 3.1 per cent,” it said. For the full 2019-20 financial year, the headline number came at 4.2 per cent as against 6.1 per cent in 2018-19.

The COVID-19 led lockdown started in the last week of March and hence the Q4 GDP number does not reflect actual ground reality currently prevailing and its full impact on main sectors of the economy.

GDP at Constant (2011-12) Prices in Q4 of 2019-20 is estimated at Rs. 38.04 lakh crore, as against Rs 36.90 lakh crore in Q4 of 2018-19, showing a growth of 3.1 percent: Ministry of Statistics & Programme Implementation https://t.co/ajLxId8vW3

— ANI (@ANI) May 29, 2020

The resultant slowdown in household spending and corporate investment will emerge when the numbers for the current quarter (April to June) are collated to reflect actual distress in the economy.

Real GDP at constant (2011-12) prices in the year 2019-20 is now estimated to attain a level of Rs 145.66 lakh crore as against the first revised estimate for 2018-19 of Rs 139.81 lakh crore, said the Ministry of Statistics and Programme Implementation.

The GDP at current prices in 2019-20 is estimated to attain a level of Rs 203.4 lakh crore as against the first revised estimates of Rs 189.71 lakh crore in 2018-19, showing a growth rate of 7.2 per cent as compared to 11 per cent in 2018-19.

The per capita income in real terms (at 2011-12 prices) during 2019-20 is estimated to attain a level of Rs 94,954 as compared to Rs 92,085 in 2018-19, resulting in the growth of 3.1 per cent during 2019-20 as against 4.8 per cent in the previous year.

The per capita income at current prices during 2019-20 is estimated to be Rs 134,226, showing a rise of 6.1 per cent as compared to Rs 126,521 during 2018-19.

The next release of quarterly GDP estimates for April to June quarter (Q1 FY21) will be on August 31, said the Ministry of Statistics and Programme Implementation. (ANI)