Indian GDP contracted 23.9% in April June quarter of 2020-21, first economic contraction in 4 decades

In August of this year, India's GDP i.e. gross domestic product data was revealed to everyone. This figure was also quite shocking for many people. The big economists of the country had estimated this data long back, so they kept in touch with the government for a long time and shared their suggestions with the government so that the people of India do not face any more problems during this epidemic had to do. Friends, it probably took me a long time to write this article and this discussion was discussed in various government and non-government media of the country in the last month, in which there was also a lot of debate in the dock media of the present opposition, in which many people have very many keep suggestions, the people of the government also tried everything possible to protect themselves and the opposition also surrounded the government on many things. So without delay, we know about the country's GDP report.

Friends, in fact if you look at these figures which have come in the last month and which have been so disheartened, they are actually the figures of the first quarter. And in this figure, GDP has gone up to 23.9% negative. And this decline is historical in itself because India has never seen such a figure in history till date. The quarterly estimation of the country's GDP calculation was started in the year 1996, and since then India has never had negative GDP results in the country. This year it is showing negative growth.Let us know what are the reasons why GDP went negative and whether we have seen recession in the history of our country.

Going back a little, in the financial year 2019-20 session, the decline in GDP has been seen from the first quarter itself. Where GDP was 5.2% in the first quarter, the GDP fell to 3.1% in the last and fourth quarters. And this is not the first time that the GDP of the country has reached minus, even before this, the total number of GDP of our country has been in minus and as I said, this figure has not come for the whole financial year. Rather, only the data for the first quarter of this financial year.And this happened because the Corona virus was put on lock down all over India, due to which all the big economy-run companies from hotels, tourism to travel industries to manufacturing to transport and services were shut down. Lakhs of crores of migrant laborers, lost their jobs and became unemployed.

Due to the Corona epidemic, big start-ups from big to new companies have also come on the verge of termination. Because of which it has seen a huge impact on most of the people working in those companies.While large start-ups have not been able to handle properly due to lack of money, the companies are taking out managers, engineers and staff boys from their jobs to work on the loss of their day. Many companies are saying that we will not be able to pay you salary yet, but when the impact of the epidemic is less and things are back to normal then you will be hired again.

Due to going to jobs and due to lack of money in the hands of the people, the expenditure of the people i.e. spending has also reduced considerably. Where the average expenditure of our country used to be 2000 till last year, now it has come down to 800 rupees. People are also spending a lot of thought and spending on the same things is very important. Due to which the demand in the market has also decreased significantly. Now many new packages and schemes have also been started to emerge from this economic slowdown.The government has also announced an economic package of 20 lakh crore rupees on its behalf, which will be spent to improve various sectors of the country.

 

 

If we talk about prevention of emergence from this crisis, then the only solution seems possible now is that the corona vaccine should be introduced as soon as possible. The sooner the vaccine is manufactured, the sooner it will spin the wheel of the economy and all the things will come to the right place as before. Unless the restrictions imposed due to lockdown will not be removed, they will not be able to take place properly. The government has a huge responsibility at this time.However, the Reserve Bank of India has also made a lot of changes in its monetary policy but that will not be enough. It is also possible that the government will have to spend more and more money, but due to the closure of GST in this quarter, if the GIST did not come, then now the government will have to raise funds in the form of debt and estimates can also be made that the government may We have to take money in the form of debt from outside countries because if such a huge amount can be taken from our own country as a loan, then obviously there is no money left to lend for the people of the country.And the biggest thing is that the government will also have to see that the inflation rate is not too big. It is not a matter that only the economy of India has come into negative, but in all the major superpower countries like United Kingdom, France, Italy, Germany, the decline has come negative but in India this decline is the highest. Surprisingly, China is the only country in the world whose economy has grown by 3.2%.