COVID crisis: India's GDP shrinks 23.9pc during April-June quarter

Last Modified Tuesday, 1 September 2020 (10:54 IST)
New Delhi:The country's (GDP) growth rate dropped to minus 23.9 percent in the current fiscal quarter from April to June due to a lockdown imposed to combat the corona virus infection.
''in Q1 of 2020-21 is estimated at Rs 26.90 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,'' according to data released by the government on Monday.
 

Quarterly GVA 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, according to a National Statistical Office (NSO) statement here.
 
GDP at Current Prices in the year Q1 2020-21 is estimated at Rs 38.08 lakh crore, as against Rs 49.18 lakh crore in Q1 2019-20, showing a contraction of 22.6 per cent as compared to 8.1 per cent growth in Q1 2019-20. 
 
GVA at Basic Price at Current Prices in Q1 2020-21, is estimated at Rs 35.66 lakh crore, as against Rs 44.89 lakh crore in Q1 2019-20, showing a contraction of 20.6 per cent.
 
Govt ignored the warnings:Rahul on reduction in GDP by 24 per cent in Q1 of 2020-21
 
New Delhi: Attacking the BJP government at the Centre on the nearly 24 percent reduction in the GDP for the first quarter of 2020-21, Congress leader Rahul Gandhi on Monday said that the government ignored the warnings given by him in March this year.
 
'GDP reduces by 24 per cent. The worst in Independent India's history. Unfortunately, the Govt ignored the warnings,'' Rahul said in a tweet. 
 
As per the data released by the National Statistical Office (NSO), India's Gross Domestic Product (GDP) for the April-June quarter (Q1) slipped by a sharp 23.9 per cent.This is the worst contraction of the GDP in the history of the Indian since Independence.
 
The data released by NSO, which comes under the Ministry of Statistics and Programme Implementation (MoSPI), provides the first benchmark on the state of India's economy after the pandemic.The June quarter GDP data is the worst contraction in the history of the Indian economy since Independence.
 
Govt  did nothing to cushion the fall in GDP : Chidambaram
 
New Delhi:Reacting to the provisional estimates of a contraction of nearly 24 per cent in the GDP for  the quarter 1 of 2020 21, Former union finance minister and senior Congress leader P Chidambaram on Monday said it is a matter of shame that the government  did nothing to cushion the fall by taking suitable
fiscal and welfare measures.
 
Addressing a press conference here,  Chidambaram said,''GDP in first quarter has declined by a whopping 23.9 per cent .The estimates do not come as a surprise to us. They should be a matter of surprise to the government that was seeing 'green shoots' on several days during the first quarter. They should also be a matter of shame to the government that did nothing - literally nothing - to cushion the fall by taking suitable fiscal and welfare measures, but we know that the Modi government has no shame and will notacknowledge its mistakes.''
 
 he country's gross domestic product (GDP) growth rate dropped to minus 23.9 percent in the current fiscal quarter from April to June due to a lockdown imposed to combat the corona virus infection.
 
GDP in Q1 of 2020-21 is estimated at Rs 26.90 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, according to data released by the government on Monday.Addressing the Congress Party briefing via video conferencing, Mr Chidambaram said ,''GDP in the first quarter has declined by a whopping 23.9 per cent. That means, about one quarter of the gross domestic output as on 30-6-2019 has been wiped out in the last 12 months.''''Another way of looking at it is, since the end of 2019-20, the gross domestic output has fallen by about 20 per cent.

The only sector that has grown is Agriculture, Forestry and Fishing at 3.4 per cent, '' the seniorCongress leader said.''The Finance Minister who blamed an 'Act of God' for the economic decline should be grateful to the farmers and the gods who blessed the farmers.Every other sector of the economy has declined sharply, some precipitously. Manufacturing is down 39.3 per cent; Construction is down by 50.3 per cent; and Trade, Hotels, Transport and Communications by 47.0 per cent.'' Mr Chidambaram said.''The economic tragedy was foretold by many close observers of the Indian economy, most recently bythe RBI in its Annual Report released a few days ago,'' he said. ''RBI had pointed out: - shock to consumption is severe and it will take quite some time to mend and regain pre-COVID 19 momentum and - a majority of respondents reported pessimism relating to the general economic situation, employment, inflation and income,'' he said.''All these had been anticipated, we had warned the government and we had urged the government to take preventive and pre-emptive measures.

Our pleas fell on deaf ears. The country, as a whole, is paying a heavy price, the poor and the vulnerable are in despair. It is only the Modi government that was nonchalant and uncaring,'' the senior Congress leader said.''The government peddled a fake narrative, but that narrative has beenexploded today by the CSO estimates. Let me say with regret: it will take many months beforethe economy turns the corner and registers positive growth. The inaction and ineptitude ofthe government gives us no hope that we will see light at the end of the tunnel at any time soon,'' he added.(UNI)