India's GDP growth numbers, released today by the Central Statistics Office, has shown that the coronavirus-induced disruptions have ravaged the economy.
The real estate sector has been also felt the heat with numbers falling by 5.3 percent in Q1 FY21 from 6 percent growth in the same period last fiscal, the Central Statistics Office data showed.
The government had imposed a nationwide lockdown from March 25 to curb the spread of COVID-19 infections, which adversely affected all sectors of the economy.
Though the contraction is deep, worse was expected, real estate experts said.
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"The US had a much worse drop at 32.9 percent. However, these readings must be viewed in the light of an unparalleled assault on the global economy, from which India is certainly not insulated, by a health disaster the likes of which the world hasn't seen since the Spanish flu in 1919. The world bounced back then, and will too this time as well," said Anuj Puri, chairman and founder of ANAROCK Property Consultants.
"The sharp contraction in India's GDP is a cause of concern. It is more than imperative now for the government to take more fiscal measures to not just perk up demand but also help restore confidence. The effective implementation of loan recast is essential. Similarly, measures like reduction in stamp duty and rationalisation of GST will encourage property buying. It will lead to significant employment generation as well," said Mohit Goel, CEO, Omaxe Ltd.
Some experts said that this is on expected lines.
Rajani Sinha, chief economist and head research Knight Frank India, also said the sharp fall in the first quarter GDP is on expected lines given that around 70-80 perccent 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. With the economy unlocking in the last few months, most economic parameters have improved to 70-90% level of the corresponding period of the previous year. However, a sustainable recovery would depend on the time taken to contain the spread of virus. It is very important for consumer sentiments and consumer spending to improve for the economy to bounce back," she said.
"Considering that India imposed one of the most stringent lockdown, a sharp fall in Q1 GDP is on the expected lines. With things slowly and gradually returning towards normalcy, we expect a sharp bounce back soon. For that Government needs to implement some measures like stamp duty reduction as announced by the Maharashtra Government," said Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com.Follow our coverage of the coronavirus crisis here