The Indian economy has declined for the first time in the last 40 years.
Q1 GDP: First quarter GDP figures.
GDP of India Q1 numbers out today: The government on Monday released the GDP figures for the lockdown quarter i.e. April-June 2020. In the first quarter of the current financial year 2020-21, the economic growth rate i.e. GDP growth rate was recorded at -23.9 percent. For the first time in the last 40 years in the Indian economy, there has been such a big decline. Due to the Corona epidemic, the lockdown enforced across the country, which has completely stalled economic activities, has given a tremendous blow to the economy.
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 April 20, 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.
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. 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 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.
GDP growth in previous quarters
Q1FY21: (-) 23-9%
Q4FY20: 3.1%
Q2FY20: 4.5%
Q3FY20: 4.7%
Q1FY20: 5%
(Source: CSO)
In the first quarter of the financial year 2020-21, the constant price of 2011-12 stood at Rs 26.90 lakh crore. In the first quarter of the last financial year, it was Rs.35.35 lakh crore. In this way, it has declined by 23.9 percent. At the same time, GDP at current price was Rs 38.08 lakh crore in the June 2020 quarter, which was 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.
Country will do better in the coming quarters: CEA
Chief Economic Advisor K.K. V. Subrahmanyan says that the main reason for the 23.9 per cent decline in the economy in the first quarter of the current financial year is the stringent lockdown imposed to prevent Kovid-19 infection. The country will perform better in the coming quarters. Rapid improvement of 'V' shape (like V letter of English on graph chart) is being seen in many areas. Subrahmanyan said that signs like electricity consumption and rail freight are showing that economic activities are improving.
The economy will fall by 10 percent in the entire financial year!
Describing the first quarter's decline as favorable, experts have estimated that the country's economy may decline by about 10 percent in the current financial year due to the impact of the Kovid-19 epidemic. Experts also say that it is important to control the epidemic to increase consumption and demand. At the same time, the industry said that the economy is expected to slowly revive in the coming quarters due to various reforms, an incentive package of Rs 20 lakh crore and RBI measures.
What is GDP, how is it calculated?
The total value of all goods and services produced in the country within any one year is GDP. GDP refers to the state of the economy of any country. This shows how the country is developing. The Central Statistics Office (NSO) calculates GDP. GDP figures are released every quarter, ie four times a year. GDP is calculated through the four components Consumption Expenditure, Government Expenditure, Investment Expenditure and Net Exports.
The NSO receives data from eight major regions of the country to calculate GDP. These include agriculture, real estate, manufacturing, electricity, gas supply, mining, forestry and fisheries, quarrying, hotels, construction, trade and communication, financing and insurance, business services and community, as well as social and public services.
0 Comments