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Friday, May 29, 2020
Quarter 4 estimates

India's GDP growth slows to 3.1%

India's GDP growth slows to 3.1%

The January-March GDP figure offered the first glimpse of the extent to which the Covid-19 outbreak and subsequent lockdown could impact the economy. Moreover, the data revealed that GDP growth in 2019-20 slowed to an 11-year low of 4.2 per cent. However, it should be noted that the full impact of the lockdown will not be reflected fully in the January-March quarter as the shutdown was announced by Prime Minister Narendra Modi on March 25. This comes even as the Ministry of Commerce & Industry said the output of eight infrastructure sectors contracted by 38.1 per cent in April against 5.2 per cent growth year-on-year. The eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).