NEW DELHI: The gross domestic product (GDP) numbers for the first quarter (Q1) ended June 30 released on Monday shows the biggest ever contraction in India’s economic growth by 23.9 per cent. The nationwide lockdown from March 25, 2020 to curb the spread of Covid-19 infections have adversely impacted all sectors of the economy.
While manufacturing and construction sectors contracted by a whopping 39.3 per cent and 50.3 per cent respectively, agriculture was the only outlier among all.
In addition, continuing restrictions on transport, educational institutions and restaurants have hit hospitality, industry, services and other sectors.
Here are the sector-wise numbers:
* Manufacturing
The manufacturing sector witnessed a sharp contraction of 39.3 per cent in Q1 of FY 2020-21. The sector has been facing a slump since the past four months as demand conditions remained subdued amid prolonged closures. Firms also reduced both staff as well as purchasing activities in wake of the lockdowns. The purchasing managers’ index (PMI) for the month of July stood at 46, down from 47.2 in June.
* Construction
With the country being under lockdown for over 60 days during the quarter, construction sector witnessed a maasive 50.3 per cent slump. The sector faced steep labour crunch as migrant workers returned to their native places in large numbers as activities were stalled.
* Mining & Quarrying
The mining and metals sector fell by about 23.3 per cent during Q1 as high raw material cost, cash flow constraints and dampened demand impacted sales.
* Trade, hotels, transport and communication
Covid has severely impacted the hospitality industry. With international borders being sealed across the globe and fear of travel adding to the woes, the sector witnessed a sharp 47 per cent slump in its activities during the first quarter.
* Industries
The industrial sector fell by 38.1 per cent in the Q1 of FY21 largely due to closure of business activities across the nation.