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Resource centre on India's rural distress
 
 

12-year low -- and Before Covid

-The Telegraph

2019-20 economic growth tumbles to 4.2%

India’s economic growth has tumbled to a 12-year low of 4.2 per cent in 2019-20.

What is even worse is that this statistic barely reflects the impact of the coronavirus-induced lockdown, which has silenced the clangour in its factories for over two months.

The lockdown began on March 25 — barely a week before the close of the financial year.

“Due to a contraction in investment of 2.8 per cent and in exports of 3.6 per cent, real GDP growth has fallen to 4.2 per cent in 2019-20, which is the lowest since 2008-09 when it was 3.1 per cent,” said D.K. Srivastava, chief policy adviser at EY India, after poring over a miserable data release put out on Friday by the National Statistical Office (NSO). Last year, the economy had grown by 6.1 per cent.

The NSO had forecast a growth rate of 5 per cent this year in its February 28 data release, before the virus outbreak.

A global financial crisis had erupted in November 2008, precipitating a slump in the world economy that forced governments to adopt big stimulus measures to guide it back to recovery.

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