Moneycontrol PRO
Live Now |Super25 3.0- India’s Largest Online Stock Traders Conference brought to you by Moneycontrol Pro & Espresso

Lockdown impact | Steep revisions in previous numbers put FY20 growth at 4.2%

The growth for the April-June quarter of 2019-20 has been revised to 5.2 percent, compared to 5.6 percent earlier. The July-September quarter growth figure has been revised to 4.4 percent from 5.1 percent earlier, and that for the third quarter has been revised to 4.1 percent from 4.7 percent earlier.

May 29, 2020 / 09:32 PM IST

India's gross domestic product (GDP) grew 3.1 percent during January-March this year, as the COVID-19 induced disruptions appeared to have devastated the broader economy, pummelled by collapsing household spending and shuttered businesses that are battling to stay afloat, data released by the government showed.

Government data showed that the GDP growth for the financial year 2019-2020 stands at 4.2 percent, compared to a 6.1 percent growth in FY19. The full-year GDP growth figure takes into account revisions to data for the past three quarters.

The growth for the April-June quarter of 2019-20 has been revised to 5.2 percent, compared to 5.6 percent earlier. The July-September quarter growth figure has been revised to 4.4 percent from 5.1 percent earlier, and that for the third quarter has been revised to 4.1 percent from 4.7 percent earlier.


In 2019-20, nominal GDP growth fell to 7.2 percent against 11 percent in 2018-19.


COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

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.

How many types of vaccines are there?

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.

What does it take to develop a vaccine of this kind?

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.

View more

Gross fixed capital formation, which is an indicator of the level of investments in the country, saw yet another quarter of contraction in Q4. Gross fixed capital formation contracted by 6.5 percent in Q4, after a 5.2 percent contraction in Q3. For the full year, it contracted by 2.8 percent, compared to a growth of 9.8 percent in the previous year.


The private final consumption expenditure (PFCE) grew by 2.7 percent during the quarter compared to a 6.6 percent growth in Q3. The full-year private consumption growth fell sharply to 5.3 percent, against a 7.15 percent growth seen in FY19.

Growth in the agriculture sector was seen at 5.9 percent in Q4, against a growth of 3.6 percent in the third quarter, and grew 4 percent for the full year.

Mining sector growth stood at 5.2 percent for Q4 and at 3.1 percent for the whole year. The manufacturing sector contracted 1.4 percent in January-March 2020 and grew by 0.03 percent for the full year FY20.

The financial services sector grew by 2.4 percent in Q4 and by 4.6 percent in FY20. The construction sector also contracted by 2.2 percent in the last quarter of FY20 and grew by 1.3 percent for the full year. Trade, hotels, transport and communication growth came in at 2.6 percent in Q4 and at 3.6 percent for FY20.

Factory output measured by the index of industrial production (IIP) contracted 16 percent 2020. This shows declining momentum of both investment and consumption. Even core industries productions of steel, electricity, coal and cement are falling or have been stagnant in recent quarters.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Moneycontrol News
first published: May 29, 2020 08:19 pm
ISO 27001 - BSI Assurance Mark