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Indian Economy Contracts 23.9%, Biggest Low after 150 years

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On Monday, an official data confirmed that all the sectors other than agriculture suffered a sharp decline leading to a GDP to shrink by 23.9%, which is the steepest ever. The report is for the first quarter of 2020 when the virus attack brought the nation’s economy to a standstill. 

The agricultural sector has shown profitable growth with 3.4 % compared to 3 % in the same quarter of last year. The most affected were the manufacturing, services, and construction sectors. As per the National Statistical Office (NSO) data, there is a shrink of 39.3 % in the manufacturing sector, 50.3 % in the construction sector, and 23.3% in mining output. The other sectors, like electricity, water supply, and gas, also shrank by 7%.

A whopping shrink of 47% is noted in transportation, trade, hotel, and communication services in the first quarter. The real estate and professional services had fallen by 5.3%, and the defense and public administration saw a 10.3 % decline. 

Though the restrictions are lifted gradually, the economic situation’s improvement will be a slow process and is expected to improve in the future quarters.

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