Crisis growing as GDP data signals weakening demand, growth impulses

India's economy was already slowing down before it entered the Covid-19 year of 2020-21, writes D K Srivastava.

Driven by a contraction in investment of (-) 2.8% and in exports of (-) 3.6%, real GDP growth has fallen to 4.2% in 2019-20, which is the lowest since 2008-09 when it was 3.1%. On the output side, there has been a fall mainly in manufacturing, construction as also in the two heavyweight service sectors, namely, trade, hotels, et. al. and financial and real estate services. The Indian economy has thus witnessed a downslide even before it entered the Covid-19 year of 2020-21. In comparison, before the 2008-09 crisis, the Indian economy had shown a high growth rate of about