The new GDP data probes that there is only a growth of 3.1 percent in fourth quarter of the fiscal year 2020. It is the lowest among last 11 years of the GDP. In the third quarter it was observed as 4.7 percent which was little good as compare to this. The core sector production goes down to -38 percent. It’s more impact will be observed in the quarter which is going to start from June.
The reason behind this is the lockdown all around the country and world as well. The production, consumption and work all got adversely affected due to the lockdown because of this pandemic covid 19. Whole world got affected due to this. So India can’t be untouched from this and it happened. In the last of the month of March the lockdown applied all around the India. The economic activities got a full stop. All economic activities excepting the essential services got affected which give a huge set back to the GDP. When see whole GDP of the fiscal year then it is 4.2 percent which is quite good as compared to this. Indian economy was suffering from poor condition at the start of the pandemic. But, condition became worst because of this. This is not going stop now as the coming days are not going to be very fruitful. The lockdown will continue, if it will open then there should also be many types of the restriction and it will take some time to work properly.
Many economists expected that the fiscal year which will start from the April will show the worst data. The country faces completed lockdown during this time period. So, it will be the lowest till now in 40 years.
If we see on the behalf of gross value added term is around 3 percent in the fourth quarter. If we say about whole year then it will be around 3.9 percent. The government had announced to give the total GDP data according to this growth rate and condition.
The data comes for the GDP has clearly shown that the lockdown has played a vital role in lowering the GDP of the country. It will continue for some more days. As there is no any medicine or vaccine for the pandemic it will tough to say about the end.
Will it controlled
Yes, it will be controlled in coming days. When the economic activities will open again which is on the way. As we had seen that in present day many freedom is provided to reopen the economic activities. So we hope for the best in coming days as soon as it possible. Many countries who had got adversely affected because of this is now coming back to their flow slowly. So, we will also back on the track.
What we will see in near future
Well, the country is still under lockdown and there are chances to increment of the lockdown further. So there will be more tough days to come in the near days. The RBI has also accepted that the fiscal year of 2020-21 the gross domestic production growth will be negative. The complete impact will be observed in the quarter which is going to start from the month of June. However, the weather department has declared that monsoon will good in this year. If monsoon will be good then there will be good farming activities and production of grains in good amount can be seen.
To recover from this loss, government has introduced many schemes to provide support to the domestic production. The mantra of ATMNIRBHAR BHARAT might be helpful if implemented properly and honestly supported by everyone. This will provide support to MSMEs and other weaker section of the society. RBI has cut down the 40 basis point. This reduction is going help people to take loans at low interest rate.