Indian economy contracts 7.3%, Q4 GDP grows 1.6%

In the first quarter, the Indian economy contracted 24.4 percent due to COVID-19 forced lockdown, and that heavily affected the manufacturing of essential goods and provision of essential services. With ease in lockdown from June 8, the scenario remained bleak as several service sector industries were shut down.

The economy surged by 1.6 percent in the Q4 (January-March) of the financial year 2020-21 (Q4FY21), revealed the National Statistical Office (NSO)  data. Meanwhile, the gross domestic product (GDP) growth contracted 7.3 percent in FY21.  In the first quarter, the Indian economy contracted 24.4 percent due to COVID-19 forced lockdown, and that heavily affected the manufacturing of essential goods and provision of essential services. With ease in lockdown from June 8, the scenario remained bleak as several service sector industries were shut down.