“History reminds us that dictators and depots arise during times of severe economic crisis.” –Robert Kiyosaki
The global economy will this year likely suffer the worst, financial crisis since the Great Depression, the International Monetary fund said as governments worldwide grapple with the covid-19 pandemic.India’s economy contracted by a whopping 23.9% in the first quarter of the 2021 financial year in what is the latest sign of the toll that the Covid-19 lockdown has taken on economic activity.
According to data released by the Statistics Ministry, real GDP for the April-June 2021 quarter fall by 23.9% in comparison to the same quarter a year ago. By most estimates, this is the first time that the Indian economy has seen a contraction in at least four decades and is the first GDP declines since the country began publishing quarterly growth figures in 1996. India went into a full lockdown towards the end of March 2020, with the supply of all non-essential goods and services searching to a near halt for most of April 2020 and May 2020. Estimates put out by Bloomberg had predicted GDP Q1 to slump by 19.2%, although other economists had pegged the fall slightly higher.In the January-March quarter of this year, the economy had grown by 3.10% on a year-on-year the lowest rate in over 17 years-and by 5.2%in the June quarter of 2019-20.
India’s gross domestic product or GDP contracted by 23.9 per cent in the April-June period, official data showed, as the coronavirus pandemic-included disruption hurt businesses and livelihoods despite monetary and fiscal support of Rs.21 lakh crore. That marked the worst decline in the economy since 1996 when Indian began publishing quarterly figures and the worst among major Asian economies. The same economists predict a contraction of 8.1% and 1.0% in the September and December quarters respectively, which would dash away hopes of an economic recovery this year. Continuing restrictions on transport, educational institutions and restaurants-and weekly lockdowns in some states- have hit manufacturing, services and retail sale, while keeping millions of workers out of jobs.
As a country, we are negatively affected by a coronavirus, job loss and slump in economic activities has taken a toll on the gap of India. GDP negative growth in India.The Indian economy has contracted for the first-time, latest economic data has been due to COVID pandemic, all over the world countries and economies have contracted and job loss and loss growth has happened in India there has a big impact.
Economic impact due to coronavirus has been huge and it can be seen from the growth data. The negative growth in hotels and trade is hugely negative. The recovery of the economy after coronavirus would be difficult and the GDP of India needs to go up. More jobs needed currently as India is badly affected. India needs strong growth, not just to satisfy the aspiration of our youth but to keep our unfriendly neighbours at bay. The recent pick-up in sectors like autos is not evidence of the much awaited v-shaped new very.
It reflects pent-up demand, which will fade as we go down to the true level of demand in the damaged, partially functioning, economy. No doubt, the government and its bureaucrats are working hard as always, but they need to be frightened out of their complacency and into meaningful activity.If there is a silver lining in the awful GDP number, hopefully, it is that “ he concluded.
(Writer is a Research Scholar at DDU Gorakhpur University and Member at FETC)