India’s gross domestic product (GDP) contracted 23.9 per cent in the April-June quarter of 2020-21 from that in the same quarter last financial year, showed official data released by the National Statistics Office (NSO) on Monday. This was mainly on account of limited economic activity in the country during the quarter amid lockdowns to control the spread of the coronavirus pandemic. 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. In the January-March quarter of this year, the economy had grown by 3.1 per cent year-on-year — the lowest rate in over 17 years — and by 5.2 per cent in the June quarter of 2019-20. The rate of India’s GDP growth had declined from 6.1 per cent in FY19 to 4.2 per cent in FY20, the slowest in 11 years. 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.

(Business Standard)