India’s GDP Down to 3.1% in Q4, FY20 Growth Shrinks to 4.2%

India’s GDP projection has taken a significant hit due to the coronavirus outbreak.

(Photo: Altered by The Quint)

A massive contraction in manufacturing and construction activities pulled India's GDP growth rate down to 3.1 percent in the last quarter of 2019-20 from Q3's 4.1 percent and 5.7 percent rise reported for the like period of the previous fiscal.

Consequently, India's FY20 GDP declined to 4.2 percent from 6.1 percent in FY19.

On a sequential basis, the quarterly growth rate has progressively come down from 5.2 percent in Q1 of 2019-20 to 4.4 percent in Q2 and 4.1 percent 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.

Growth Rate for 8 Core Industries in April Slips to 38.1%

Meanwhile, Ministry of Commerce and Industry stated, “The growth rate of Index of eight core Industries for April 2020 declined by 38.1 percent (provisional) compared to decline of 9 percent (provisional) previous month of March 2020.”

The ministry added that the final growth rate of Index of Eight Core Industries for January 2020 remains unchanged at 2.2 percent.

"The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP),” the Ministry added.

(With inputs from IANS, ANI)