India's GDP Drops By 23.9%, Sharpest Contraction On Record

[timmy]

India's GDP Drops By 23.9%, Sharpest Contraction On Record

The data comes as the government is strategically removing restrictions imposed in March to curb COVID-19 infections, which have caused a big blow to an already-slowing economy.

MarketEdited by Sandeep SinghUpdated: August 31, 2020 5:39 pm IST

 

Economists say the rapid increase in COVID-19 cases might delay a recovery in the already-slowing economy

 

 

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India's gross domestic product or GDP contracted 23.9 per cent in the April-June period, official data showed today, as the coronavirus pandemic-induced disruptions hurt businesses and livelihoods despite monetary and fiscal support of ₹ 21 lakh crore. That marked the worst incidence of negative growth for the economy since 1996, when India began publishing quarterly figures, and also the worst among major Asian economies. Today's reading - which fully captures the impact of the coronavirus crisis on economic and business activity - is in stark contrast with expansion of 3.1 per cent in the previous quarter, and 5.2 per cent in the quarter ended June 30, 2019.

Here are 10 things to know:

1. Today's data marks the likely onset of India's deepest recession on record, which is widely expected to run through the second half of the fiscal year, as the rapid spread of the pandemic continues to weigh on demand, hindering a pickup in economic activity. Typically, recession is defined as two consecutive quarters of decreasing GDP.

2. The data comes as the government is strategically removing restrictions imposed in March to curb COVID-19 infections, which have caused thousands of job losses and forced the majority of workforce to stay indoors, leading to a big blow to an already-slowing economy.

3. Economists in a poll by news agency Bloomberg had expected contraction in the June quarter to be in the range of 15-25.9 per cent, with a median estimate of 19.2 per cent.

4. Though the coronavirus-related restrictions have been gradually lifted, there has been an impact on the economic activities as well as on the data collection mechanisms, the government's statistics office said.

5. COVID-19 is spreading faster in India than anywhere else in the world, as daily tallies have exceeded those of the US and Brazil for almost two weeks. India currently has more than 3.54 million cases, and 63,498 deaths.

6. Challenges related to other underlying macroeconomic indicators such as industrial production and consumer inflation will also have implications on these estimates, it said, mentioning likely revisions "in due course".

7. Economists say the rapid increase in COVID-19 cases amid stretched public finances and soaring inflation means a recovery may not take place soon.

8. In May, the government announced fiscal and monetary support worth ₹ 21 lakh crore, equivalent to roughly 10 per cent of the country's GDP. Many economists have said that much of that support was already budgeted for, by the government and very little included new spending.

9. The Reserve Bank of India has reduced the key interest rates by 115 basis points (1.15 percentage point) since March to revive economic activity, but is watchful of worsening inflationary pressures. It has already shifted gears to focus on economic health for the time being, instead of inflation.

10. Before the pandemic, Prime Minister Narendra Modi's administration was aiming at transforming India from a $2.8-trillion economy in to $5 trillion one by 2024, despite slowing growth and low demand. 

https://www.ndtv.com/business/gdp-contracts-by-23-9-in-june-quarter-compared-to-3-1-growth-in-previous-2288121?pfrom=home-topscroll

[timmy]

India’s economy contracts by 23.9%, worst in decades

Experts had said the country’s economy was expected to contract mainly because this quarter had seen more of the 68-day nationwide lockdown restrictions, which were enforced by the government from March 25 to contain the spread of the coronavirus disease (Covid-19) outbreak.

INDIA Updated: Aug 31, 2020 18:10 IST

hindustantimes.com | Edited by Meenakshi Ray

Hindustan Times, New Delhi

People shop for fish at a market in Kolkata. India’s economy had grown at 3.1% in the January-March quarter, its slowest pace in at least eight years. (AP)

     

India’s gross domestic product (GDP) fell by 23.9% in April-June period quarter, official data released by the Union ministry of statistics and programme implementation (Mospi) showed on Monday, amid coronavirus pandemic-induced which hit businesses and livelihoods across the country.

India’s economy had grown at 3.1% in the January-March quarter, its slowest pace in at least eight years. The GDP data had shown that consumer spending slowing, private investments and exports contracting in the March quarter.

Experts had said the country’s economy was expected to contract mainly because this quarter had seen more of the 68-day nationwide lockdown restrictions, which were enforced by the government from March 25 to contain the spread of the coronavirus disease (Covid-19) outbreak.

Data showed earlier that India’s GDP growth had slowed even before the Covid-19-induced lockdown restrictions. The growth rate in Q4 FY20 at 3.1% was the weakest point in the new data series that had started in 2012-2013. The FY20 real GDP growth is 4.2%, which is also the weakest in the series.

India’s economy grew at its weakest pace since 2013 between April and June period last year as consumer demand and government spending slowed amid global trade frictions, raising chances of the central bank cutting interest rates further at its next meeting. Asia’s third-largest economy expanded just 5.0% year on year, it grew 8% in the same quarter of 2018, and 5.8% in the previous quarter.

Global economies are experiencing contraction due to the Covid-19 pandemic. The International Monetary Fund (IMF) has estimated a global contraction of 4.9% in 2020. The United Kingdom’s (UK) economy has reported a 21.7% year-on-year plunge in the June quarter.

https://www.hindustantimes.com/india-news/india-s-gdp-growth-rises-falls-by-23-9-per-cent-in-april-june-quarter/story-Yj1GGTR7fuHAQ6QNL0jpBL.html

[timmy]

Covid-19 pain: India's GDP contracts by record 23.9% in Q1

2 min read . Updated: 31 Aug 2020, 06:26 PM ISTEdited By J. Jagannath

• This is the sharpest contraction since India started publishing quarterly figures in 1996
• Data released by NSO showed manufacturing, construction and trade sectors saw massive contraction at 39.3%, 50.3%, 47% respectively

Topics

Indian EconomyGDP

India' witnessed its steepest quarterly decline in gross domestic product as the country emerges to be the global hotspot for coronavirus infections.

GDP contracted 23.9% in the quarter to June from a year ago. This is the sharpest contraction since India started publishing quarterly figures in 1996.

India’s road to recovery appears a long and hard one. A mix of monetary and fiscal measures to prop up the economy have fallen short, leaving millions jobless and destitute, and businesses on the brink of bankruptcy.

Data released by National Statistical Office showed manufacturing, construction and trade sectors saw massive contraction at 39.3%, 50.3%, 47% respectively. Surprisingly, government expenditure as represented by the public administration services also contracted 10.3%.

As expected, the only silver lining in the data was performance of the farm sector which grew at 3.4% in the June quarter. Favourable monsoon, improved availability of water in reservoirs for irrigation, robust kharif sowing, large procurement of food grains and robust rabi production seems to have provided support to agriculture growth.

The novel coronavirus tally in India crossed 36 lakh on Monday with 78,512 new cases, while the number of recoveries surged to 27,74,801, pushing the recovery rate to 76.62 per cent, the Health Ministry said.

The death toll climbed to 64,469 with 971 more people succumbing to the infection in a span of 24 hours, according to the ministry data.

Once the world’s fastest-growing major economy, India is now on track for its first full-year contraction in more than four decades. While there are early signs that activity began picking up this quarter as lockdown restrictions were eased, the recovery is uncertain as India is quickly becoming the global epicenter for virus infections.

“The dismal quarterly GDP print confirms the substantial cost that the harsh lockdown and lack of fiscal support inflicted on the economy," said Priyanka Kishore, head of India and Southeast Asia economics at Oxford Economics Ltd. in Singapore. “While the start of the July-September quarter has likely benefited from a post-lockdown boost, those gains are already at risk of being lost amid the ongoing pandemic and New Delhi’s hesitance to open the fiscal taps."

https://www.livemint.com/news/india/india-s-gdp-contracts-record-23-9-in-q1-due-to-covid-key-highlights-11598865864772.html

[tom brady]

So what...we have Ram Mandir built

[manadonga]

so what 

we need candles rally 

dappula dance 

[Ryzen_renoir]

Kottesam records ,  I expected even bigger drop. 

Ippatiki ayina konchem reforms chestara lekapothey ilagey manage chesukuntu pothara baffas ?

[bhaigan]

 

[bhaigan]

 

[bhaigan]

 

[kevinUsa]

We need ram mandir one solution for all

Go mutra

 

[kevinUsa]

 

[bhaigan]

2 minutes ago, kevinUsa said:

 

Darnab and his diversion techniques

[manadonga]

1 hour ago, Ryzen_renoir said:

Kottesam records ,  I expected even bigger drop. 

Ippatiki ayina konchem reforms chestara lekapothey ilagey manage chesukuntu pothara baffas ?

ante endi bhayya ram mandhir nirman mena 

leka ekkadina road widening lo mask lu temple kosam fight cheyyatama ? 

[jefferson1]

Idantha covid 19 valla aindi leka pothe worlds best economy undedi

—modi bhakth 

[Hummer]

Time to implement jalaganna liquor scheme throughout the nation