GDP contracted by 24% in AMJ 2020 quarter from last year
Private consumption spending which accounts for 60% of GDP, fell by 26%
Exports that was 20% to the GDP, fell by 20%
Investment activity that accounted 32% of GDP, shrunk by of 47%
Construction sector suffered by 50% & Mfg. by 39%
Yearly budgeted fiscal deficit target reached 4 months with 8 more months to go
Only positive, agriculture grew 3.4%
Covid infection is still spiking, no sign of reversal, situation still volatile
The downturn had extended into JAS 2020 quarter now
These input are from the formal economy. Informal sector activities are severely impacted across India, situation is even worse.
MSME, a veritable force of Indian economy, is in shambles, many are still closed or functioning @ fractional capacity.
Wage income came down sharper than GDP due to unemployment and falling wages.
The Staes are suffering the most as the Centre is denying them GST compensation, faulty GST policy implementation?
States had spent all its money for pandemic fighting, left with no cash to spend, while undergoing fiscal policy restrictions on their revenue raising powers
How will the government and its leaders help the country come out of the maladies?
राम जाने, pray, 🙏!
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