India's GDP shrinks 23.9% in Q1 as Covid-19 halts economic activity
01 September 2020
India's gross domestic product (GDP) contracted by 23.9 per cent in the first quarter of the current financial year (April-June 2020-2) as economic activity came to a near standstill under the impact of the coronavirus (Covid-19) pandemic.
Data released by the Central Statistical Office (CSO) showed India’s GDP at constant (2011-12) prices in Q1 of 2020-21 stood at Rs26,90,000 crore, against Rs35,35, 000 crore in Q1 of 2019-20, showing a contraction of 23.9 per cent.
India’s economy had reported a 5.2 per cent growth in Q1 of 2019-20.
The Gross Value Added (GVA) stood at -22.8 percent as against the estimates of -19.2 per cent. GVA at constant (2011-12) prices for Q1 of 2020-21 is estimated at Rs25,53,000 crore against Rs33,08,000 crore in Q1 of 2019-20, showing a contraction of 22.8 per cent.
GDP at current prices in Q1 of 2020-21 is estimated at Rs38,08,000 crore, against Rs49,18,000 crore in Q1 of 2019-20, showing a contraction of 22.6 per cent compared to 8.1 per cent growth in Q1 2019-20.
GVA at current prices in Q1 2020-21 is estimated at Rs35,66,000 crore against Rs44,89,000 crore in Q1 of 2019-20, showing a contraction of 20.6 per cent.
Agriculture reported a growth of 3.4 per cent in the June quarter. The first quarter estimates are based on agricultural production during Rabi season of 2019-20 (which ended in June 2020) obtained from the Department of Agriculture, Cooperation and Farmers’ Welfare while estimates of production, mainly based on production targets for milk, egg, meat and wool for livestock sector from the Department of Animal Husbandry and Dairying and fish production data from the Department of Fisheries, CSO said.
Industrial sector contracted by 38.1 per cent and the services sector shrank 20.6 per cent while the manufacturing sector contracted by 39.3 per cent. Industrial production estimates are based on performance of key sectors like transport (including Railways, road, air and water transport etc), communication, banking and insurance during the period April-June 2020-21.
Performance of the corporate sector during April-June 2020-21 is based on data received from BSE/NSE.
The government had imposed restrictions on economic activities not deemed essential, as also on the movement of people from 25 March 2020 with a view to contain spread of the Covid-19 pandemic. Though the restrictions have been gradually lifted, there has been an impact on the economic activities as well as on the data collection mechanisms, CSO pointed out.
The timelines for filing statutory returns were also extended by most regulatory bodies. In these circumstances, the usual data sources were substituted by alternatives like GST, interactions with professional bodies etc. and which were clearly limited, it added.