Lockdown delivers a huge blow to economy!
- IndiaGlitz, [Tuesday,September 01 2020]
The GDP figures for April-June quarter have proven that the economy was hit terribly due to the nationwide lockdown. The Indian economy contracted by as much as 23.9% year-on-year, which is said to be the first GDP contraction in more than 40 years.
In terms of monetary figures, GDP at Constant Prices in the first quarter of 2020-21 is estimated at Rs 26.90 lakh crore, as against Rs 35.35 lakh crore in the first quarter of 2019-20. This is the worst since quarterly data began in 1996, senior journalist Rajdeep Sardesai wrote.
Breaking up, here is how the different sectors took a huge hit:
Manufacturing contracted by 39.3%.
Construction contracted by 50.3%.
Trade, hotel, transport, communication contracted by 47%.
The shocking deterioration of the economy is the result of a draconian lockdown that had the open support of almost all States in India. One can argue that the governments had no other choice, as it was feared back in March and April that business as usual might prove to be catastrophic by causing millions of deaths and unspeakable horror in terms of hospitalizations.
But even when we are in September, States like Maharashtra and West Bengal are still clinging onto localized lockdown, which commentators say is not advisable.