As widely feared, Indias GDP shrunk by a historic 23.9 percent in April-June 2020, wiping out a national income to the tune of at least 10 lakh crores. This leads to the assessment that the annual GDP contraction may be anywhere in the range of 5 to 12 percent, unprecedented in the history of Indias independence.
The last significant contraction in the economy was experienced during 1979-1980 when GDP declined by 5.2 percent. The massive erosion in Indias national income is primarily due to COVID-19 crisis that led to over two months of lockdown. The economy has not fully recovered in June too. The economists suggest that Indias growth trajectory may continue to be in negative territory for at least six quarters.
The steep decline is across all sectors except agriculture. The agricultural sector recorded a positive growth rate of 3.4 percent despite lockdown induced disruption. However, the signs of weakness in the Indian economy have been visible even before the COVID-19 crisis. Indias GDP growth rate fell to a mere 4.2 percent in 2019-2020. In fact, the economic slowdown began with demonetization, aggravated by complex GST, and finally plummeted due to the COVID crisis.
The economic downturns main driver is the steep fall in private consumption expenditure, which declined by 26.7 percent. The massive demand compression resulted in a big fall in investment captured by the decline in gross fixed capital formation by 47 percent.
Prof K Nageshwar: GDP Shrunk By 23.9 Percent, Ten Lakh Cr Wiped Out
About SocialNewsXYZ
An Indo-American News website. It covers Gossips, Politics, Movies, Technolgy, and Sports News and Photo Galleries and Live Coverage of Events via Youtube. The website is established in 2015 and is owned by AGK FIRE INC.
As widely feared, Indias GDP shrunk by a historic 23.9 percent in April-June 2020, wiping out a national income to the tune of at least 10 lakh crores. This leads to the assessment that the annual GDP contraction may be anywhere in the range of 5 to 12 percent, unprecedented in the history of Indias independence. The last significant contraction in the economy was experienced during 1979-1980 when GDP declined by 5.2 percent. The massive erosion in Indias national income is primarily due to COVID-19 crisis that led to over two months of lockdown. The economy has not fully recovered in June too. The economists suggest that Indias growth trajectory may continue to be in negative territory for at least six quarters. The steep decline is across all sectors except agriculture. The agricultural sector recorded a positive growth rate of 3.4 percent despite lockdown induced disruption. However, the signs of weakness in the Indian economy have been visible even before the COVID-19 crisis. Indias GDP growth rate fell to a mere 4.2 percent in 2019-2020. In fact, the economic slowdown began with demonetization, aggravated by complex GST, and finally plummeted due to the COVID crisis. The economic downturns main driver is the steep fall in private consumption expenditure, which declined by 26.7 percent. The massive demand compression resulted in a big fall in investment captured by the decline in gross fixed capital formation by 47 percent. https://www.gulte.com/political-news/22375/prof-k-nageshwar-gdp-shrunk-by-23-9-percent-ten-lakh-cr-wiped-out