- The Indian GDP shrank by nearly 24% in the April-June quarter, making it the first economic contraction since 1960.
- This data was released by the National Statistics office (NSO).
According to the data released, the 23.9% drop in the GDP has happened for the first time in four decades. There is attributed directly to the minimal economic activity in the country due to the conditions caused by the coronavirus.
But the economic growth in January-March, when the coronavirus had not caused an economic shut down in the country, the GDP growth was 3.1%, lowest in 17 years.
But India is not the only country to see such a shrinking GDP. Many big economies of the world have also been affected by the coronavirus.
- United Kingdom’s GDP dropped by 20.4%.
- Germany – 10.10%.
- United States – 31.7%
- France – 13.8%
- Italy – 12.4%
- Canada – 12%
- Japan – 7.8%
China, the second largest economy in the world, has been one of the only country which is not going through a recession at the moment. There was a 3.2% growth in the Chinese GDP. Many attributed this to the timely lockdown in the country, others believe that the reason is the limited breakout of the virus, which was limited to only a few cities and states, such a Wuhan.
The government has not released any official statement regarding this huge fall in the GDP. A few days ago, the Indian Finance Minister, Nirmala Sitharaman, said that the fall in the Indian economy was due to the coronavirus, which she said was an “Act of God”. They have not attributed the already falling economy of the country, as seen in the January – March rise in GDP, a 3.1%, the lowest in 17 years.
The opposition has been constantly questioning the government on the deplorable state of the Indian Economy. The most vocal among them is the former Finance Minister and Congress member, P. Chidambaram. He has been very vocal about the downfalls of the current Government, where the economy is concerned.
The coronavirus has wrecked havoc on the economic and social conditions of the entire world. There are hardly any countries which have not seen the extreme implications of the virus.
The entire country went under lockdown on 25th March and has not opened completely yet. The entire economy is still in the early stages of recovery. India is still in the process of completely unlocking. Schools and colleges have not opened till now, but many other enterprises have. But the retail market has not yet improved. Many people still fear going out in public and shopping. This has also been fueled by the complete recession. Millions have lost their jobs in the last few months. The daily earners have been pushed into poverty. The middle class, the biggest purchaser in the country, has become the biggest victim of the economic crises.
Hardly any reforms for the improvement of the people’s economic condition and the ongoing virus has become a huge cause of worry. Such a huge decline in the GDP can pose to be a huge issue for the country and must be improved immediately.