Welcome to Business Outlook
Related Articles
India’s economy posted its steepest contraction on record in the April-June quarter of the current fiscal year as the strict lockdowns imposed to ward off the spread of the deadly coronavirus infection stalled economic activity, shut out consumption and investment and led to job and income losses.
Asia’s third largest economy was already faltering when the pandemic struck. In April-June, it suffered a contraction for the first time since India began maintaining quarterly records in 1996.
Data released by the National Statistical Office (NSO) on Monday showed GDP in the April-June quarter of 2020-21 slumped 23.9% compared with growth of 3.1% in the previous (January-March) quarter.
Among major economies, India’s contraction was the sharpest. China, after posting a contraction in the January-March quarter has recovered with 3.2% growth in the April-June quarter.
Globally, India is close to UK’s contraction of 20.4% in the second quarter.
Agriculture was the only bright spot. The sector, which has benefited from a robust monsoon, rose an annual 3.4% in the June quarter compared with a growth of 3% in the June quarter of 2019-20.
(DS)
