The GDP figure stood at 3.1% in the January-March period (fourth quarter) of the 2019-20 financial year.
“GDP at constant prices (2011-12) in the first quarter of 2020-21 is estimated at Rs 26.90 lakh crore, compared to Rs 35.35 lakh crore in the first quarter of 2019-20, showing a 23.9% contraction compared to 5.2% growth in the first quarter of 2019-20, “the ministry of statistics and program implementation said in an official statement.
The gross value added (GVA) figure showed a 22.8 percent contraction in the first quarter.
Although the blockade was partially lifted in phases, some states re-imposed it to control the increase in the number of cases. As a result, economic growth took a big hit.
Consequently, the Center implemented the Rs 20 lakh crore Atmanirbhar Bharat stimulus package aimed at stimulating growth and building a self-sufficient India.
Additionally, the Reserve Bank of India (RBI) has cut interest rates by 115 basis points (bps) since March, suggesting that more is needed to protect the economy from business and media disruptions. induced by the pandemic.
At its bimonthly monetary policy meeting earlier this month, the RBI issued a cautionary note saying that the prolonged spread of Covid represents a “downside risk” to the national economy, which is expected to remain in the negative zone in the current prosecutor.
Last week, the central bank had said that the contraction in economic activity was likely to continue into the second quarter of the current fiscal year, as the rallies seen in May and June appear to have weakened after the reimposition of closures to contain the coronavirus pandemic.
Although there have been some signs of green shoots in the economy, with agricultural products increasing due to good monsoon rains and targeted public spending, most other companies continue to show weak performance. Also, consumer demand and the manufacturing sectors have yet to recover.
However, India’s economic growth was slowing even before the outbreak of the pandemic. GDP growth of 4.1% in the third quarter of fiscal 2019-20 was the lowest since the global financial crisis more than a decade ago.
(With contributions from the agency)
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