It has been seen that India’s GDP shrinks by 23.9% in the last few months from April - June.
Due to the corona pandemic and interruption in the economic activities that India’s economic contraction in Q1 FY21 has been not up to the mark.
The nominal GDP growth has also fallen by 20.9 % in the quarter.
Since the measurement has begun Q1FY21 has come out with the worst economic performance.
In the agriculture industry, gross value GVA (GROSS VALUE ADDED) has grown by 3.4% in the first quarter in consideration of the previous year.
In the scenario of economic breakdown, the experts are saying that the healthier economy will be the more are the chances of a job. Which will help in creating more employment opportunities for the people? There have been a lot of suffering due to this economy breakdown.
India’s economy has a great contribution from private consumers as they contribute more than half the Indian economy. But it got crumbled by 27 per cent in Q1.
But the investment has received the worst fall till now, the investment which is represented by the gross fixed capital formation (GFCF) has fallen by 47 %.
There has been supported from the centre and state government who has tried to support more by spending more. the further result of this is that government expenditure has been grown by 16%.
The service sector which includes construction, trade, banking and financials, and real estate and restaurants, has received a 27 % fall in the GVA over the previous year.
In regards to some of the data the Confederation of Indian Industry (CII), said:” localized lockdowns, being imposed by state governments and district administrations, might be avoided to keep the economic recovery on track”.
CII Director General Chandrajit Banerjee also stated: “We can expect a recovery in the second half of the financial year, led by supportive fiscal and monetary policies.”
Chief Economic Advisor K V Subramanian has also said to some of the media publications “Economic performance in April-June is primarily due to an exogenous (an external cause) shock that has been felt globally’’.
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