Q1 GDP Falls 23.9%, Worst Quarterly Slump in Four Decades
Last Updated: 16th December 2022 - 02:12 pm
With a view to contain the spread of the Covid-19 pandemic, restrictions were imposed on the economic activities that were not deemed essential, as also on the movement of people from 25 March 2020. Though the restrictions have been gradually lifted, the impact it has created on the country’s economy is worst than what the analysts anticipated. India’s GDP (Gross Domestic Product) has suffered a historical slump of 23.9% in Q1 FY2020-21.
With this India, the world’s fifth largest economy has become second-worst performer following the US and close to the UK. The US recorded a slump of 32.9% while the UK witnessed a contraction of 20.4% during the June Quarter. The figures recorded by India have been regarded as the sharpest contraction since the ministry started publishing quarterly figures in 1996.
The lockdown has hit every sector in the country, with agriculture being the only one spared. The agricultural sector grew by 3.4% during this quarter. The manufacturing sector was down 39% while the construction recorded a dip of over 50%. Hotel, trade, communication and transport sector posted a decline of 47% during the period. The service sector also slumped 20% compared to the growth of 4.4% in the last year during the period. Industries like airlines, hospitality, and entertainment etc, which contributes to the 60% of the country’s economy and have suffered the maximum.
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