GDP for 2019-20 Q4 plummets to 3.1%, full year growth at 4.2%

Data suggests that India's GDP growth in FY2019-20 slowed down to an 11-year-low of 4.2 per cent.

India's GDP estimates for the last quarter of the FY2019-20 are out. As per the estimates, India's estimated gross domestic product (GDP) for the fourth and final quarter of FY2019-20 fell to 3.1 per cent.

Data suggests that India's GDP growth in FY2019-20 slowed down to an 11-year-low of 4.2 per cent.

These figures pertain to the last quarter (January-March) and therefore, offer a mere glimpse of the stagnation of economic growth brought about by the novel coronavirus outbreak and the following nationwide lockdown.

Prime Minister Narendra Modi had announced a nationwide lockdown first on March 25. This means that the GDP estimates will reflect the loss of business in the final week of the month of March, the last month of the last quarter of FY2019-20. Not only this, the estimates are also being viewed as a precursor of what lies ahead with industries and businesses shut in India throughout April and May.

Earlier this month, the Reserve Bank of India (RBI) lowered growth forecast for FY2020-21 owing to the ongoing pandemic and restrictions imposed on economic activities to contain the spread of infection. RBI Governor Shaktikanta Das had said in his last address, "GDP growth in 2020-21 is expected to remain in negative territory with some pick up in the second half."