India’s economic growth slumped to 3.1% in the March quarter, the slowest pace in 11 years, even as fresh data suggested the economy may be headed for a major shock in the June quarter.
Data released by the statistics department showed gross domestic product (GDP) grew at 4.2% in the year ended 31 March, compared with 6.1% in the previous year, as private consumption slowed down and investment demand contracted even before the pandemic hit the economy.
To add to the government’s woes, India’s fiscal metrics worsened beyond government’s estimates, with the fiscal deficit for FY20 widening to 4.6% of GDP against the finance ministry’s estimate of 3.8% of GDP, data released by the Controller General of Accounts on Friday showed.
The March quarter GDP partially captures the impact of the coronavirus-induced lockdown, which was formally imposed on 25 March and is now in its third month.
Manufacturing output shrank 1.4% in the quarter, the third straight contraction. Agriculture and government spending are the only silver linings, growing at 5.9% and 10.1%, respectively, in the March quarter.
https://www.livemint.com/news/india/india-s-gdp-growth-drops-to-3-1-in-march-quarter-11590754748943.html
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India’s economic growth slumped to 3.1% in the March quarter, the slowest pace in 11 years, even as fresh data suggested the economy may be headed for a major shock in the June quarter. Data released by the statistics department showed gross domestic product (GDP) grew at 4.2% in the year ended 31 March, compared with 6.1% in the previous year, as private consumption slowed down and investment demand contracted even before the pandemic hit the economy. To add to the government’s woes, India’s fiscal metrics worsened beyond government’s estimates, with the fiscal deficit for FY20 widening to 4.6% of GDP against the finance ministry’s estimate of 3.8% of GDP, data released by the Controller General of Accounts on Friday showed. The March quarter GDP partially captures the impact of the coronavirus-induced lockdown, which was formally imposed on 25 March and is now in its third month. Manufacturing output shrank 1.4% in the quarter, the third straight contraction. Agriculture and government spending are the only silver linings, growing at 5.9% and 10.1%, respectively, in the March quarter. https://www.livemint.com/news/india/india-s-gdp-growth-drops-to-3-1-in-march-quarter-11590754748943.html
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