Canada GDP in April fell a record 11% as economy shuts

Marco Green
May 31, 2020

NSO said India will attain per capital income of Rs. 94,954 during '19-20 as against Rs. 92,085 in '18-19, a growth of 3.1 percent as against 4.8 per cent in the previous year.

Look at it another way, the rate of growth for India's GDP has just about halved in just three years - from 8.3% recorded in 2016-17, the year of demonetisation.

Senior Congress leader P Chidambaram on Friday said the 3.1 percent GDP growth in the January-March quarter of 2019-20 is a telling commentary on the economic management of the BJP government.

To deal with the economic fallout of COVID-19, the government has announced a Rs 20.9 lakh crore package, mostly made up of subsidised credit to small businesses and farmers with direct fiscal stimulus limited to around 1 per cent of the GDP. Among the key sectors of the economy, the agricultural sector has exhibited and improved growth of 4.0%, while the mining and quarrying sector has returned to positive growth of 3.1% in FY2020. "Consequently, the estimates are likely to undergo revision". "Of the 91 days of Q4, lockdown applied to only 7 days", the former finance minister said.

The Reserve Bank had pegged the GDP growth for 2019-20 at 5 percent as projected by the NSO in its first and second advance estimates released earlier this year in January and February respectively.

The Indian economy was in its worst phase even before the coronavirus outbreak, with growth in the gross domestic product (GDP) falling to a 11-year low of 4.2 per cent in 2019-2020.

In absolute terms, fiscal deficit for FY20 came in at Rs 9.36 trillion, 122 per cent of the Revised Estimates of Rs 7.67 trillion.

Before the virus hit, India was already in the middle of a protracted economic slowdown because of a festering crisis among shadow lenders and a sharp decline in consumer demand and private investment.

There was a marginal improvement in the GDP growth rate in Q3 of FY20 at 4.7%, after it declined for five consecutive quarters.

Meanwhile, the CSO revised downwards growth in the previous October-December quarter of 2019-20 to 4.1% from 4.7%. The output of the manufacturing sector was flat, while the output growth of utilities sector moderated to 4.1% and construction sector to 1.1%. The earlier estimate by various arms of the government was 5 per cent growth in '19-20.

Other reports by Click Lancashire

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