As per the data shared by the National Statistical Office (NSO) on Monday, India’s Gross Domestic Product (GDP) has contracted by 23.9 percent for the April-June quarter that is quarter 1 of the current fiscal year. The main reason behind this contraction is the coronavirus outbreak followed by a series of stringent lockdowns.
What did the NSO say?
The official statement given by the NSO is as follows: –
“GDP has shrunk from Rs 35.35 lakh crore in Q1 of 2019-20 to Rs 26.90 lakh crore in the first quarter of Q1 of 2020-21, showing a contraction of 23.9 percent as compared to 5.2 percent growth in Q1 2019-20.”
The reason behind this huge contraction in the GDP
Quarter 1 which mainly accounts for the data from the month of April to June, witnessed a series of strict lockdowns due to the coronavirus outbreak in the country. Among these 3 months, the economy suffered the most in the month of June because of nationwide lockdown. There was a complete lockdown on almost all the economic activities including the manufacturing sector and service sector.
Top 4 Worst hit Sectors
The sectors which got severely affected during this pandemic are as follows: –
- Construction – The construction and real estate business topped in the list of the worst-hit sectors during the April-June quarter of FY2020-21. The sector almost shrunk to its half, it contracted by 50 percent.
- Hotel industry – After the construction and real estate, the hospitality sector is another worst-hit sector during the April-June quarter of FY2020-21. It shrunk by nearly 47 percent.
- Manufacturing – manufacturing industry contracted by 39.3 percent during Q1 of FY2020-21.
- Mining – The mining sector recorded a contraction of 23.3 percent during the said quarter.
The only Growing Sector
During the April-June quarter of FY2020-21 when all other sectors contracted significantly, agriculture is the only sector that marked a growth of 3.4 percent.
According to the sources available in the public domain, India’s GDP had increased by 5.2 percent during the same quarter (Q1) of the last fiscal year (2019-20). While in the last quarter (Q4) the GDP was in the expanding stage with a rate of 3.1 percent.