This is the first instance of an economic contraction for the country in at least four decades, and also the first GDP decline since India began publishing quarterly numbers in 1996.
Gross value added (GVA) for the country declined by 22.8 per cent, manufacturing by 39.3 per cent, and mining by 23.3 per cent. Gross fixed capital formation (GFCF) contracted 52.9%, electricity 7 per cent, and construction activities 50.3 per cent. Agriculture and allied activities, meanwhile, were a bright spot, growing 3.4 per cent during the quarter.
India idismal GDP numbers is leading compare to other countries .
China managed to buck the trend and, in fact, see an expansion of 3.20 per cent during the April-June quarter, the UK’s economy shrank 21.7 per cent, Germany’s by 10.10 per cent, and the US’ by 9.10 per cent and all this are far less than India’s steep fall under BJP led Modi Government
Former chief statistician Pronab Sen had projected a GDP contraction of 25 per cent to 35 per cent but cautioned that the NSO might come up with a much lower contraction (15-16 per cent) because corporate data would be used as proxy for the informal sector.
ICRA Principal Economist Aditi Nayar, who had estimated a 25 per cent fall, had said: “We caution that the divergence in the performance of the formal and informal sectors might not get fully represented in the GDP data, given the lack of adequate proxies for the latter.”
The suddent anounced lockdown on march 25 2020 contributed to a sharp 40.7 per cent year-on-year contraction in manufacturing volumes, according to ICRA’s Nayar.
“Business disruption from March to May has been so severe for production, supply/trade, and activities, especially in sectors like aviation, tourism, hotels and hospitality, that FY21 GDP growth is expected to contract for the first time since FY80,” said India Ratings Chief Economist Devendra Pant.