India’s gross domestic product (GDP) grew 3.1 per cent in January-March, official data showed on Friday. That was much better than economists’ estimates, but still lower than an expansion of 4.1 per cent estimated in the previous quarter. With that, the annual expansion in the GDP stood at 4.2 per cent in fiscal year 2019-20, marking the lowest pace of growth in 11 years. The official rate of GDP expansion comes days after the country entered a third month of lockdown with few exceptions to curb the spread of the coronavirus pandemic, which has hampered an already-slowing economy and forced many businesses to trim their operations leading to thousands of job losses.
Here are 10 things to know about the GDP data released today:
The median forecast from a poll of economists by news agency Reuters had pegged GDP growth at 2.1 per cent in the final quarter of fiscal year 2019-20, with forecasts ranging between +4.5 per cent and -1.5 per cent.c
With data for the latest quarter, GDP growth for the full financial year – which ended on March 31 – came in at 4.2 per cent, as the COVID-19 lockdown affected the manufacturing and services sectors. In fiscal year 2018-19, the country’s GDP had expanded 6.1 per cent.
The GDP growth rates for the previous quarters were also revised downwards. For quarter ended December 31, 2019, GDP was revised downwards to 4.1 per cent from 4.7 per cent. Likewise GDP expanded at 4.4 per cent in the September quarter and 5.2