For the first time in India’s recorded statistical history, all the eight GDP segments, except agriculture, have seen major contraction in April-June quarter of 2020. Agriculture, forestry and fishing saw a growth of 3.4 percent in Q1 of 2020, against 3.0 percent growth in the same period a year ago. Mining and quarrying saw a contraction of 23.3 percent in April-June of 2020, against 4.7 percent growth in the same period a year ago.
Manufacturing saw a contraction of 39.3 percent in April-June of 2020, against a growth of 3 percent in the same period a year ago. Electricity, gas, water supply and other utility services saw a contraction of 7 percent in April-June of 2020, against a growth of 8 percent in the same period a year ago.
Construction saw a contraction of 50.3 percent in April-June of 2020, against a growth of 5.2 percent in the same period a year ago. Trade, hotels, transport, communication and services related to broadcasting saw a contraction of 47 percent in April-June of 2020, against a growth of 3.5 percent in the same period a year ago.
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Financial, real estate and professional services saw a contraction of 5.3 percent in April-June of 2020, against a growth of 6 percent in the same period a year ago. Public administration, defence and other services contracted 10.3 percent against a growth of 7.7 percent in the same period a year ago.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
India, which imposed one of the strictest lockdowns in the world on March 25, bringing all economic activities to a grinding halt, started unlocking the country in a phased manner since June 1.
Though businesses and economic activities have started picking up since then, India's economy still doesn't seem to be out of the woods, with various agencies expecting India's GDP to contract in the first quarter of FY21.
A healthy economy grows over time and it's indicated in its increasing GDP, or the value of the goods and services it produces. Recession is defined as a period when economic activities contract for two quarters in a row (or six months). Another contraction in the current July-September quarter and India would officially enter recession, which occurs when there is a contraction in business cycle, caused by shrinking economic activity and followed by a consequent decline in spending.
The Indian economy is facing the most unprecedented shock in economic activities due to the Covid-19 pandemic-induced lockdown.
The nationwide lockdown that was announced on March 25 to help stop the spread of Covid-19 had brought all economic activity to a grinding halt. Phased easing that began since May has not been able to show any encouraging signs of recovery.
India's manufacturing PMI contracted at a quicker pace in July than a month before and was one of the worst globally.