The GDP shrank by the steepest extent ever by 23.9 percent in the April-June period due to the impact caused by a coronavirus.
The Indian government had imposed strict restrictions on the economic activities not deemed essential and on the movement of people from 25 March to contain the spread of the Covid-19 pandemic. Though the limits have been gradually lifted, there has been an impact on the economic activities which shut out consumption and investment and led to job and income losses.
The official data released on August 31, 2020, showed the GDP at the constant price (2011-12) in Q1 of 2020-21 is estimated at Rs 26.90 lakh crore, as against Rs 35.35 lakh crore in Q1 of 2019-20, a contraction of 23.9 percent as compared to 5.2 percent growth in Q1 2019-20.
Agriculture remained out as the only exception. All other sectors, including manufacturing, construction, and services, suffered sharp declines. Electricity, gas, water supply, and other utility services segments too shrank by 7 percent against 8.8 percent growth a year ago. Services like a hotel, transport, communication, and broadcasting were hit the most with a decline of 47 percent. Financial, real estate, and professional services too suffered the most.