New Delhi: India’s economy faltered in its steepest contraction on record in the April-June quarter making it the worst slump in this decade. The economic slump that occurred has been attributed to the strict lockdowns imposed to ward off the spread of the deadly coronavirus infection which ultimately obstructed economic activity, shut out consumption and investment and let to job losses and loss of income source.
India’s economy was already facing a crushing defeat even before the pandemic struck. The IMF had hinted on the India’s economic condition with former RBI Governor Raghuram Rajan hinting on the government failures for the country’s despicable economic condition.
In April-June, India suffered a contraction for the first time since India began maintaining quarterly records in 1996.
Data released by the National Statistical Office (NSO) on Monday showed GDP in the April-June quarter of 2020-21 slumped 23.9% compared with growth of 3.1% in the previous (January-March) quarter. 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. Globally, India is close to UK’s contraction of 20.4% in the second quarter.