GDP contracts by record 23.9% in Q1

News: The National Statistical Office(NSO) has released the GDP data.It has shown that GDP in the April-June quarter of 2020-21 has shrinked by 23.9% compared with growth of 3.1% in the previous (January-March) quarter.

Facts:

• Indian economy shrank by 23.9%, its worst slump since the country started releasing quarterly data in 1996.
• Among major economies, India’s contraction was the sharpest.China, after posting a contraction in the January-March quarter has recovered with 3.2% growth in the April-June quarter.
• Agriculture was the only bright spot.The sector rose an annual 3.4% in the June quarter compared with a growth of 3% in the June quarter of 2019-20.
• Manufacturing sector has fallen by 39.3% in the June quarter while construction slumped 50.3% during the three-month period.
• Services sector which accounts for nearly 60% of the economy, slumped by 20.6% in the June quarter, compared to a 4.4% growth in the previous. 
• Private consumption witnessed a sharp decline of 24.5% in the first quarter from 8.5% increase in the year ago period.
• However, government consumption saw a 20.2% increase in the June quarter compared with the 9.5% growth in the same quarter of the previous year.