Why GDP Contracted 23.9 Per Cent Even After 20 Lakh Crore Economic Package?

The spread Covid-19 pandemic has heavily dented India's economy and plunged the country's GDP to (-) 23.9 per cent during the first quarter (Q1) ended June 2020-21 on a year-on-year basis. According to the National Statistical Office (NSO), the GDP at 'Constant (2011-12) Prices' in Q1 of 2020-21 is estimated at Rs 26.90 lakh crore, as against Rs 35.35 lakh crore in Q1 of 2019-20, showing a decline of 23.9 per cent. Prime Minister Narendra Modi had announced a package of 20 lakh crore to strengthen the declining economy but the amount seems to be visible only on paper.