India GDP growth for the first quarter (ended June 30) of the financial year 2020-21 experienced the highest quarterly downturn of 23.9 percent quarter, as announced by the government on Monday. The sudden reduction in GDP figures is mostly due to the suspension of market operations across the quarter due to national lockdowns to prevent the spread of the deadly coronavirus.
GDP was 3.1% in the January-March period (Q4) of the financial year 2019-20. In the same period last fiscal year, the economy grew by 5.2%.
According to the data released by the National Statistical Office (NSO), the GDP growth rate was 5.2 per cent in the first quarter of the last fiscal year 2019-20. Most rating agencies had forecast a fall in GDP for the first quarter of the current financial year. Let us tell you, the government announced a lockdown from March 25 to prevent infection of the corona virus epidemic. After 20 April, the central government began to relax the lockdown in certain economic activities. The Indian economy grew at a rate of 6.1 per cent in the financial year 2018-19. Whereas in 2019-20, the growth rate of the economy was 4.2 percent.
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According to NSO figures, the gross value addition (GVA) in the manufacturing sector for the first quarter of 2020-21 stood at 39.3 per cent. In the construction sector, it has been -50.3 percent.
GDP growth in previous quarters
It is -7 percent in electricity. GVA stood at -38.1 percent in industry and -20.6 percent in service sector. Only the growth of agriculture sector has registered a growth of 3.4 percent. GVA stood at -23.3 per cent in the mining sector, -47 per cent in trade and hotels, -10.3 per cent in public administration and -5.3 per cent in finance, real estate.
In the first quarter of FY 2020-21, the constant price for 2011-12 was Rs 26.90 lakh crore. It was Rs 35.35 lakh crore in the first quarter of the last financial year. Thus there has been a decline of 23.9 percent. At the same time, the GDP at the current price was Rs 38.08 lakh crore in the quarter of June 2020, compared to Rs 49.18 lakh crore in the first quarter of the last financial year. In this way there is a decline of 22.6 percent.