The headline number for the full FY20 financial year came to an 11-year low of 4.2 per cent, against 6.1 per cent in 2018-19, said the Ministry of Statistics and Programme Implementation (Mospi) in a statement.
India’s eight infrastructure sectors contracted by a record 38.1 per cent in April, data from the industry department showed earlier in the day.
The services sector, which accounts for 55 per cent of GDP, was among the hardest hit
Trade, hotels and transport staggered with 2.6 per cent in the January-March quarter from a year ago, while financial services chocked at 2.4 per cent.
The first Advance Estimates, released in January for Budget preparations, pegged the economic growth rate at 5 per cent in 2019-20.
The second Advance Estimates, released on February 28, also projected the FY20 growth rate at 5 per cent, though there were changes in growth in various segments within overall economy and in various quarters compared to that in the first Advance Estimates.
The full impact of the lockdown on manufacturing and services will become more apparent in the June quarter, with Goldman Sachs predicting a 45 per cent contraction from a year ago.
One Positive speculation is Weather forecasts for normal monsoon rains are in farmers’ favour at least, giving hope that the rural sector can help support the millions of migrant workers who returned to their villages from the cities when the lockdown began.
Not only the negative facts been attributed by swarms of locusts invading northern parts of India but also millions of migrant workers deaths and woes across the nation has turned out to be the main focus area that affect the corona virus management of Ruling establishments
Unlike some advanced economies, India’s Rs 21 trillion stimulus package has largely focussed on subsidised credit to small businesses and farmers, while direct fiscal stimulus was limited to around 1 per cent of the GDP, economists said.
The Reserve Bank of India cut policy rates by 40 basis points earlier this month, and has reduced its key repo rate by 115 basis points since February.
India even though in lockdown phase as on 65th day .. India made up nearly a quarter of Asia’s new infections last Friday, with the continent as a whole accounting for 23 per cent of the world’s daily tally – up from a figure as low as eight per cent in March and April. India presently in 9th Position in terms of Corona virus affected Patients and 13the Position in terms of death is a worrisome factor
Getting rid of this factors and overriding the negative mood the nation facing across needs a more determined and smart working leadership ..