Corona-era impact on economy, historic GDP decline of 23.9% in June quarter

New delhi date. 31 August 2020, Monday

The Corona crisis saw a historic 23.9% drop in GDP in the April-June quarter of this fiscal year. The Ministry of Statistics and Program Implementation has released the GDP figures for the April-June quarter of the financial year 2020-21. Core sector figures have also been disappointing. Production in eight industries fell 9.6% in July.

The economy has come to a complete standstill in this quarter due to two months of lockdowns in April and May, and also gained some momentum in June. As a result, ratings agencies and the Economist fear that GDP could fall by 16 to 25% in the June quarter. If that happened then it would be a historic decline.

Experts say the manufacturing, manufacturing, trade, hotels, transport, communications, etc. sectors account for about 45% of the country's GDP and have had a devastating impact on business in the first quarter.