The Indian economy shrank 23.9 percent year-on-year in the first quarter of the financial year 2020-21, much worse than market estimates of about 18 percent drop.
This is the biggest contraction on record as the coronavirus crisis took a toll on the economy.
Industries recorded a fall of 38.1 percent, services 20. 6 percent, manufacturing of 39.3 percent and hotels of 47 percent. Agriculture was the only bright spot, growing 3.4 percent.
"The sharp fall in the first-quarter GDP is on expected lines, given that around 70-80 percent of the economy was on a standstill in the first two months of this quarter. As expected, private final consumption expenditure and investments have contracted sharply in this quarter, while the positive agriculture growth has been the silver lining," said Rajani Sinha, Chief Economist & Head Research at Knight Frank India.