First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21

The two growth engines, consumer spending and investments contract massively as govt-led spending lifts GDP from falling further. On supply side, only agriculture shows growth, industry contracts 40%

India’s economy contracted by 23.9 per cent in April-June -- the worst performance since quarterly measurement began in 1996 and probably the first contraction since 1980.

The lockdown and the consequent suspension in economic activities due to the pandemic were so massive that among a mix of advanced and emerging economies, India’s GDP contraction in Q1 FY21 was the worst.

Nominal GDP growth, too, contracted by 20.9 per cent in the quarter.

The damage visible across all areas of the economy was somewhat cushioned by two indicators.

Gross value added (GVA) in agriculture grew by 3.4 per cent over the first quarter of the