India’s Gross Domestic Product (GDP) has contracted by 23.9pc in Q1 of the fiscal 2021 to Rs26.9tn from Rs35.35tn in (April-June), the biggest slump on the back of COVID-19 related lockdowns, stated a release by the National Statistical Office (NSO) and Ministry of Statistics and Programme Implementation. The GDP in Q1 of FY2019 grew by 5.2pc.
The output of steel declined severely by 16.5pc followed by natural gas, coal, electricity and refinery products which decreased by 13.5pc, 10.2pc and 13.9pc, respectively. During April-July period, the sector’s output slipped by 20.5pc, compared to the growth of 3.2pc in the prior year period.
The lockdown severely impacted the construction sector which contracted by 50.2pc followed by mining and manufacturing industries with 23.3pc and 39.3pc, respectively.
India’s eight core industries’ output contracted for the fifth consecutive month by 9.6pc in July as against expansion by 2.6pc in the prior year amid labour shortage and liquidity crunch according to Ministry of Commerce and Industry, cited by media reports.
The agriculture sector, however, witnessed a growth of 3.4pc supported by normal monsoon. Moreover, when manufacturing and services sectors were stopped due to lockdown, agriculture and allied activities were partially allowed by the government.
The Gross Value Added (GVA) shrank by 22.8pc in Q1 as against the estimate of 19.2pc to Rs25.5trillion, compared to Rs33trillion in the prior year period.