Historic GDP contraction shows India among worst-affected by Covid-19 pandemic
Even as the coronavirus disease continues to batter economies across the globe, Monday’s data showing contraction in India’s GDP by 23.9 per cent served a grim reminder of how country’s economy has been served a knock-out punch amid the pandemic.
With the latest downfall in GDP, India is trailing behind all G7 countries — Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
India has suffered the sharpest contraction since quarterly figures started being published in 1996. The GDP fall is also worse than what was expected by most analysts. The GDP contraction in the world’s fifth-largest economy compared with 3.1 per cent growth in the preceding January-March quarter and 5.2 per cent expansion in the same period a year back, according to official data released on Monday.
While the pandemic is responsible for causing historic GDP contractions in economies around the world, the situation in India has been made worse by more than 78,000 new infections a day and total cases topping 35 lakh -- behind only the US and Brazil.