The Indian economy witnessed a whopping 23.9 percent contraction, the gross domestic product (GDP) numbers for the April-June quarter of fiscal year 2020-21 released on August 31 showed.
The real GDP shrank 22.6 percent in the said quarter, marking the sharpest drop in the country's growth numbers in more than 40 years.
The July-September quarter numbers become extremely important as another contraction would technically mean India has entered recession. The country's economy had last entered a recession in 1979.
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In the Budget for 2020-21, Finance Minister Nirmala Sitharaman had assumed nominal GDP growth of 10 percent in 2020-21, and fiscal deficit of 3.5 percent of GDP, a goal that looks almost unthinkable to achieve given the rapid turn of events.
Here are the key highlights from the Q1FY21 GDP numbers:
> The 'real' or inflation-adjusted gross domestic product (GDP) contracted 22.6 percent in the April-June quarter this fiscal.
> Barring the agriculture sector that grew 3.4 percent, all others were in the red.
> Manufacturing, mining and construction contracted 39.3 percent, 23.3 percent and 50.3 percent respectively.
> Gross Value Added (GVA), which is GDP minus taxes, contracted 22.8 percent in April-June 2020 compared to 4.8 percent growth last year.
> Trade, hotels, transport, communication and services related to broadcasting contracted 47 percent in the first quarter of 2020-21.
> The real estate sector, along with financial and professional services, shrank 5.3 percent in April-June 2020.Follow our coverage of the coronavirus crisis here