New Delhi: The Indian economy seems to have taken a major hit due to the lockdown, imposed for control of the Coronavirus pandemic. The Indian GDP has declined by 23.9% in the April-June quarter. This is the biggest slide in the history of Indian economy. The economists and analysts have warned that the decline will continue for the next two quarters too, and therefore it is believed that the economy will not come back on track in this year.
On Monday, the ‘National Statistics Office’ announced the performance of the economy for the first quarter on the year. According to that, all the important sectors contributing to the GDP, other than the agriculture sector have reported a decline. The growth of 3.4% in agriculture sector, during the quarter, is the only consolation. Manufacturing sector reported a decline of 39.3%, construction 50.3% and the trade sector reported a decline of a whopping 47%. The government expenditure also reduced by 10.3% during the same period.
India started the practice of announcing performance of the economy, in each quarter of the financial year, since 1966. This is the biggest and a historic decline in the Indian economy since then. This is also the biggest slide among the G-20 group countries.
The Indian government imposed a complete lockdown, on 25th March, following the onset of Coronavirus pandemic. The lockdown continued till end of May. Although the relaxation of lockdown started from June, life has still not returned to normal. Transactions in the tourism, education, passenger movement, railway, hotels and entertainment sectors are at a complete stand still and have not returned to their original state. Therefore, analysts and economists claimed that there is no possibility of the economy gaining momentum in the next few months.
Related posts:
Revised GST bill is accepted by majority of Indian States: Union Finance Minister
Major decline in India’s gold purchases
India will become Atmanirbhar if attention is paid to 15 sectors, claims ASSOCHAM
Indian economy will reach $10 trillion in a decade, claims Chief Economic Adviser
GST expected to help achieve 9% growth rate
Government announces significant package for MSME sector, loan assistance of ₹3 lakh crores
RBI certain about Indian Economy’s competency to face Global Challenges
