The GDP numbers for Q1FY21, released by the the Central Statistics Office today, revealed that the Indian economy has suffered its worst contraction due to the debilitating impact of the coronavirus outbreak.
With the numbers on expected lines, experts feel that the investment climate will stay subdued.
"Most of the numbers are in line with what we expected," said A Prasanna of ISec, adding that real estate sector's performance came as a surprise.
For the April-June quarter, real estate contracted 5.3 percent compared to 6 percent in the same quarter last year.
"Investment growth has been going down for quite some time and investment growth slowdown is understandable in this environment. Issue is what will revive first: investment or consumption. We assume investments will stay weak, expect to see consumer behaviour changing," said DK Joshi of CRISIL.
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 has long way to go to come out of this morass.
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