The GDP data for Q1FY21 released on August 31 by the National Statistical Office (NSO) showed that the Indian economy was weighed down by the coronavirus pandemic and the lockdowns. The national GDP contracted 23.9 percent, with Gross Valued Added at 22 percent.
The data showed that this was the worst contraction on record, with all eight sectors of GDP, except agriculture, contracting.
"April-June was a quarter in which the Indian and global economy were in lockdown," Chief Economic Adviser (CEA) KV Subramanian said, adding that the country is witnessing a V-shaped recovery as it enters the unlock phase. "Once the unlock phase was undertaken, the decline has been progressively lower. The trend is one of a V-shaped recovery," he added.
The CEA also said that while the trend is of a V-shaped recovery, there is still residual uncertainty, and this will persist until the pandemic is brought under complete control.
India's private final consumption expenditure (PFCE) for April-June 2020 fell 54.3 percent, compared to a 56.4 percent growth in the same period a year ago. PFCE is a realistic proxy to gauge household.Among all the sectors, the agriculture sector, aided by plentiful summer rains this year, however, stood out as a beacon of hope, growing 3.4 percent in the first quarter of 2020-21 from 3 percent last year, but wasn’t strong enough to offset the damage in other segments, all of which appear to have fallen off a steep cliff, data released by the NSO showed.