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Govt lowers GDP growth rates for Q1, Q2 and Q3 in revised data

GDP growth has now been revised to 4.4 per cent in Q2 compared to 5.09 per cent earlier

twitter-logoBusinessToday.In | May 29, 2020 | Updated 23:02 IST
Govt lowers GDP growth rates for Q1, Q2 and Q3 in revised data
GDP grew at a slower pace of 3.1 per cent in the fourth quarter of 2019-20

The government on Friday said that it has revised estimates including growth rates of Q1, Q2 and Q3 of 2019-20 released earlier. The revision has been done in  accordance with the revision policy of National Accounts, Central Statistics Office (CSO) also said. GDP grew at 5.2 per cent in Q1FY20 as against 5.6 per cent earlier. Similarly, GDP growth has now been revised to 4.4 per cent in Q2 compared to 5.09 per cent earlier. Q3FY20 GDP now stands at 4.1 per cent as against 4.71 per cent, according to the revised data.

GDP grew at a slower pace of 3.1 per cent in the fourth quarter of 2019-20. The growth was 4.2 per cent in the fiscal year through March 2020, the Statistics Ministry said, as compared to 6.1 per cent in FY19.

"Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2019-20 is now estimated to attain a level of Rs 145.66 lakh crore, as against the First Revised Estimate of GDP for the year 2018-19 of Rs 139.81 lakh crore, released on 31st January 2020. The growth in GDP during 2019-20 is estimated at 4.2 percent as compared to 6.1 percent in 2018-19," it added.

"GDP at Current Prices in the year 2019-20 is estimated to attain a level of Rs 203.40 lakh crore, as against the First Revised Estimates of Rs 189.71 lakh crore in 2018-19, showing a growth rate of 7.2 percent as compared to 11.0 percent in 2018-19," it noted.

"If the fall in GDP growth in Q4 FY20 is any indication, the prospects for the Indian economy in FY21 are grim. In the first quarter of Q1 FY21, economic output of the country is expected to be very limited, with 2 of the 3 months of the quarter

seeing virtually no activity in many sectors. The pick up in economic activity would be dependent on the easing of lockdown across the country and the containment of the spread of the virus. The longer the economy at a standstill the longer the return to normalcy. Even with easing of lockdown, revival across sectors would vary significantly and be contingent on how they are able to address the challenges of liquidity, labour, logistics, demand and capacity utilization," CARE Ratings said.

The next release of quarterly GDP estimates for the quarter April-June, 2020 will be on August 31.

Also read: Coronavirus in India: 7,466 cases in 24 hours, highest 1-day jump, death toll at 4,706; Maharashtra worst-hit

Also read: Delhi-Gurgaon border: Haryana govt seals border as coronavirus cases increase in capital

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