INDIAN GDP CONTRACTED 23.9% IN APRIL JUNE QUARTER
                     INDIAN GDP CONTRACTED 23.9% 
IN APRIL JUNE QUARTER
INTRODUCTION
• India’s Gross Domestic Product growth 
rate contracted by 23.9% for the April 
to June quarter as the corona virus 
pandemic took a toll on the country’s 
economy
Source: Business Today 
COVID-19 CRISIS
• The Covid-19 crisis has brought on India’s 
fourth recession since independence.
– The economy last contracted in FY80. 
– This is the first contraction since India 
began releasing GDP growth data on a 
quarterly basis in 1997-98.
Source: Bloomberg  
LOCKDOWN IMPACT
• Looking at the spread of the Covid-19 
pandemic, restrictions were imposed on 
the economic activities, also on the 
movement of people from 25 March, 2020.
• Though the restrictions have been 
gradually lifted, there has been an impact 
on the economic activities.
 
Source: Money Control 
SECTORAL BREAK-UP
• Agriculture sector grew at 3.4%
• Mining sector contracted 23.8% 
• Manufacturing contracted 39.3%
• Construction contracted 50.3%
• Financial services sector contracted by 
5.3%
• Public administration, defense and other 
services contracted by 10.3%
Source: CIO.com 
 
EXPENDITURE TRENDS
 
• Private consumption, reflected in private 
final consumption expenditure, fell 
26.7%
• Investments, as reflected by gross fixed 
capital formation, contracted 47.1%
• Government final consumption 
expenditure grew 16.4%
Source: Person Super Investor
 STATUTORY RETURNS 
 
• The timelines for filing statutory returns 
were extended by most regulatory 
bodies.
• The usual data sources were substituted 
by alternatives like GST, interactions 
with professional bodies etc. and which 
were clearly limited.
 
Source: medium.com 
 INTERNATIONAL MONETARY FUND 
 
• In June, the International Monetary 
Fund had said that India’s GDP will 
decline by 4.5% in the 2020-’21 financial 
year. 
• But it said the Indian economy will 
bounce back to grow at 6% in 2021-’22.
Source: YouTube
POLITICS 
• The Opposition Congress has regularly 
targeted the Narendra Modi-led 
government over the economic crisis
• Congress has said that there is a fear 
that we may even reach the lowest GDP 
[growth] since independence, since 1947
Source: Northeast Now
5 TRILLION ECONOMY
• Before covid 19 pandemic, the 
government was aiming at transforming 
the economy, from an estimated $2.8 
trillion, to $5 trillion by 2024, despite 
slowing growth and low demand.
Source: The Quint 
ACTION BY RBI
• The Reserve Bank of India has reduced 
the key interest rates by 115 basis points 
since March to revive the economy.
• It has already shifted gears to focus on 
economic health for the time being, 
instead of inflation.
Source: DNA India