Indian economy grew at 3.1% in January-March quarter, government data showed. It is the slowest pace in at least two years, according to Business Standard.
The GDP had expanded by 5.7% in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO).
GDP growth in financial year 2019-20 was at 4.2%.
Economist Sakshi Gupta told Reuters, “While the Q4 number is higher than our expectations, we expect it to be revised down in subsequent releases as the impact of the lockdown is adequately factored in.”
The economist further said, “we expect GDP growth to contract by 4.8% in FY21, with a sharp drop of 21% in Q1.”
Meanwhile, output of eight infrastructure sectors contracted by 38.1% in April.
Recently, SBI research report Ecowrap, predicted fourth quarter GDP growth at 1.2%, with full year growth expected to be at 4.2%.
The report, according to PTI, said the fourth quarter GDP growth numbers is noteworthy as it includes one week of lockdown which has the potential to skew the growth numbers.
“In the Indian case, while the shutdown was in the last week of March several restrictions had come in earlier especially for services which would have pushed back growth numbers further,” the rating agency said, PTI reported.
(With PTI and Reuters inputs)