COVID-hit India, which continues to fight back the Coronavirus pandemic, has faced another jolt in the face upon realising that country's Gross Domestic Product (GDP) for the first quarter of 2020-21 contracted 23.9 per cent.

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With a view to contain spread of the COVID-19 pandemic, several restrictions were imposed on the economic activities (except some essential goods and services), as also on the movement of people from 25 March, 2020.

With slight improvement in certain areas, the restrictions have been gradually lifted in phased manner. However, there has been an impact on the economic activities as well as on the data collection mechanisms. The timelines for filing statutory returns were also extended by most regulatory bodies. In these circumstances, the usual data sources were substituted by alternatives like GST, interactions with professional bodies etc. and which were clearly limited.

Taking into account the various factors, the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation on Monday released the estimates of Gross Domestic Product (GDP) for the April-June period, both at Constant (2011-12) and Current Prices, along with the corresponding quarterly estimates of expenditure components of the GDP.

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Five Things To Know About India's First Quarter GDP

  • The first quarter estimates are based on agricultural production during Rabi season of 2019-20 (which ended in June 2020) obtained from the Department of Agriculture, Cooperation & Farmers’ Welfare; estimates of production, mainly in the form of production targets for Milk, Egg, Meat and Wool for Livestock Sector from the Department of Animal Husbandry & Dairying and Fish production data from the Department of Fisheries.

  • Today's readings revealed by the government of India reveal that GDP at Constant (2011-12) Prices in Q1 of 2020-21 is estimated at ` 26.90 lakh crore, as against ` 35.35 lakh crore in Q1 of 2019-20. It showed a contraction of 23.9 per cent as compared to 5.2 per cent growth in Q1 2019-20.

  • Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2020-21 is estimated at `25.53 lakh crore, as against ` 33.08 lakh crore in Q1 of 2019-20, showing a contraction of 22.8 per cent.

  • GDP at Current Prices in the year Q1 2020-21 is estimated at Rs. 38.08 lakh crore, as against Rs 49.18 lakh crore in Q1 2019-20, showing a contraction of 22.6 per cent as compared to 8.1 percent growth in Q1 2019-20.

  • GVA at Basic Price at Current Prices in Q1 2020-21, is estimated at `35.66 lakh crore, as against `44.89 lakh crore in Q1 2019-20, showing a contraction of 20.6 percent.