GDP shrinks 24%; anticipated, says govt

Tribune News Service
New Delhi, August 31

The authorities on Monday put up a courageous face on the worst-ever within the nation’s gross home product (GDP) for the primary quarter of 2020-21, saying it was alongside anticipated strains given the upper stringency with which the lockdown was imposed within the nation.

Worst since 1870

  • Covid lockdown-battered financial system suffered largest crash because the 1870 recession

  • Agriculture sector noticed a development of three.5%, which was the one saving grace

  • Railway freight in July stood at 95% of the July 2019 ranges

Pointing out that this was the worst world recession since 1870, Chief Economic Adviser (CEA) KV Subramanian mentioned “what we have been going by way of is a one-and-a-half century occasion’’ however took solace from the enhancements in some financial fundamentals in August.

The GDP for April to June this 12 months fell by a large 23.9 per cent in comparison with the identical interval final 12 months with a 3.5 per cent development within the agriculture sector being the saving grace.

The index of eight core industries fell by 20.5 per cent for April to June in comparison with the identical interval final 12 months. The group of eight—coal, crude oil, pure fuel, refinery merchandise, fertilisers, metal, cement and electrical energy—comprise 40.27 per cent of the index of commercial manufacturing. The fiscal deficit was additionally going out of hand. In April-June, it was at Rs 8.21 lakh crore as a result of the overall receipts have been solely Rs 2.32 lakh crore whereas the expenditure was Rs 10.54 lakh crore. Last 12 months, the fiscal deficit for a similar interval was Rs 5.47 lakh crore.

Subramanian sought to present an upbeat state of affairs by claiming that India was starting to expertise a V-shaped restoration. For occasion, core sector development had fallen to 38 per cent in April however the decline was progressively decreased to 22 per cent in May, 13 per cent in June and 9.6 per cent in July.

The CEA additionally identified that railway freight in July was at 95 per cent of July 2019 ranges and it was six per cent increased within the first 26 days of August this 12 months in comparison with the identical interval final 12 months. Similarly, e-way payments, which seize inter-state commerce, in August have almost climbed to final August’s ranges.

Meanwhile, investor wealth tumbled by Rs 4,55,914.68 crore following heavy selloff within the fairness market the place the BSE benchmark Sensex plummeted 839 factors amid contemporary India-China border tensions. Investors have been additionally cautious forward of the discharge of GDP information, merchants mentioned.

After rallying 543 factors in morning commerce, the BSE Sensex surrendered all good points to shut at 38,628.29, a decline of two.13 per cent.

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