A massive contraction in manufacturing and construction activities pulled India’s GDP growth rate down to 3.1 per cent in the last quarter of 2019-20 from Q3’s 4.1 per cent and 5.7 per cent rise reported for the like period of the previous fiscal.
Consequently, India’s FY20 GDP declined to 4.2 per cent from 6.1 per cent in FY19.
On a sequential basis, the quarterly growth rate has progressively come down from 5.2 per cent in Q1 of 2019-20 to 4.4 per cent in Q2 and 4.1 per cent in Q3.
Last fiscal, the Indian economy faced a severe demand slowdown on account of high GST rates, farm distress, stagnant wages and liquidity constraints.
This time around, the national lockdown implemented to curb the Covid-19 outbreak has delt a severe blow to the economy.