India's GDP falls to 11-year-low at 3.1%, full year growth at 4.2%
Reports suggest that India's GDP growth in FY2019-20 slowed down to an 11-year-low of 4.2 per centAuthor : Sunaina
It is official now, the coronavirus crisis has turned the India economy upside down. India's GDP estimates for the last quarter of the FY2019-20 are out. India's estimated gross domestic product (GDP) for the fourth and final quarter of FY2019-20 fell to 3.1 per cent.
Reports suggest that India's GDP growth in FY2019-20 slowed down to an 11-year-low of 4.2 per cent.
These figures pertain to the last quarter (January-March) and therefore, offer a mere glimpse of the stagnation of economic growth brought about by the novel coronavirus outbreak and the following nationwide lockdown.
PM Modi had announced a nationwide lockdown first on March 25. This means that the GDP estimates will reflect the loss of business in the final week of the month of March, the last month of the last quarter of FY2019-20. Not only this, the estimates are also being viewed as a precursor of what lies ahead with industries and businesses shut in India throughout April and May.
Earlier this month, the Reserve Bank of India (RBI) lowered growth forecast for FY2020-21 owing to the ongoing pandemic and restrictions imposed on economic activities to contain the spread of infection. RBI Governor Shaktikanta Das had said in his last address, "GDP growth in 2020-21 is expected to remain in negative territory with some pick up in the second half."
Share Markets Before GDP Announcement:
The key Indian equity indices traded on a negative note on Friday morning, ahead of the release of GDP data for the January-March quarter.
Decline in the Asian markets also reflected in the domestic indices, analysts said. The Asian indices fell amidst the rising US-China tensions.
Heavy selling pressure in banking and finance stocks also weighed on the domestic indices.
Around 10.22 a.m., the BSE Sensex was trading at 32,057.66, lower by 142.93 or 0.44 per cent from the previous close of 32,200.59.
It had opened at 32,041.29 and has so far touched an intra-day high of 32,079 and a low of 31,823.80 points.
The Nifty50 on the National Stock Exchange was trading at 9,470.05, lower by 20.05 points or 0.21 per cent from the previous close.
India's core industrial output:
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The output of India's eight major industries' crashed in April 2020 by over 38 per cent on account of the national lockdown implemented to curb the Covid-19 outbreak.
On a sequential basis, the Index of Eight Core Industries had declined by 9 per cent in March 2020.
The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.