New Delhi, May 29: India's Gross Domestic Product (GDP) growth rate fall to 4.2 percent for the financial year 2019-20. The numbers are way lower than 6.1 percent recorded in the fiscal year 2018-19. The growth rate is lowest clocked by India in the last 11 years. For the quarter ending March - that was affected by a week's period due to COVID-19 lockdown - a growth of 3.1 percent was recorded. China 'Not to Flood Economy With Liquidity' in COVID-19 Recovery, Scraps GDP Growth Target For 2020-21.
The unprecedented plunge in numbers come amid the ongoing lockdown to contain coronavirus transmission. The restrictions have virtually grounded the economy. A recovery will require sustained efforts and a considerable period of time as demand has acutely shrunk, experts point out.
"The growth in GDP during 2019-20 is estimated at 4.2 percent as compared to 6.1 percent in 2018-19," said a statement issued by the Ministry of Statistics and Programme Implementation on Friday.
"GDP at Constant (2011-12) Prices in Q4 of 2019-20 is estimated at Rs. 38.04 lakh crore, as against Rs 36.90 lakh crore in Q4 of 2018-19, showing a growth of 3.1 percent," the Ministry further added.
Update by ANI
GDP at Constant (2011-12) Prices in Q4 of 2019-20 is estimated at Rs. 38.04 lakh crore, as against Rs 36.90 lakh crore in Q4 of 2018-19, showing a growth of 3.1 percent: Ministry of Statistics & Programme Implementation https://t.co/ajLxId8vW3
— ANI (@ANI) May 29, 2020
The plunge of annual GDP growth to 4.2 percent marks a larger concern as the nationwide lockdown came into effect on March 25 -- only six days before the calculation of financial year 2019-20 was scheduled to end. The remainder of the fiscal also saw a consistent weakening of the economy fueled by lack of demand.
Prime Minister Narendra Modi, earlier this month, unveiled a Rs 20 lakh crore economic stimulus which is expected to rejuvenate the economy which was suffering from a slowdown before being hit by the COVID-19 pandemic. He also stressed on creating an "Aatmanirbhar Bharat" or self-reliant India where the focus would be on domestic production.
(The above story first appeared on LatestLY on May 29, 2020 06:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).