The March quarter GDP partially captures the impact of the coronavirus-induced lockdown, which was formally imposed on 25 March and is now in its third month. Agriculture and government spending are the only silver linings, growing at 5.9% and 10.1%, respectively, in the March quarter. This was evident from the data released by the industry department on Friday for the eight infrastructure sectors, which contracted by a record 38.1% in April. Economists have veered towards a consensus that India’s economy will face its worst recession in at least 40 years, contracting by at least 5% this fiscal. Earlier, S&P’s Indian arm Crisil, Fitch Ratings and Goldman Sachs projected India’s economy to contract 5% in FY21.

Source: Mint May 29, 2020 12:22 UTC