According to data released by the statistics ministry on Monday evening, real GDP for the April-June 2021 quarter fell by 23.9% in comparison to the same quarter a year ago.
By most estimates, this is the first time that the Indian economy has seen a contraction in at least four decades and is the first GDP decline since the country began publishing quarterly growth figures in 1996.
India went into a full lockdown towards the end of March 2020, with the supply of all non-essential goods and services screeching to a near halt for most of April 2020 and May 2020.
Estimates put out by Bloomberg had predicted GDP for Q1 to slump by 19.2%, although other economists had pegged the fall slightly higher.In the January-March quarter of this year, the economy had grown by 3.1% on a year-on-year – the lowest rate in over 17 years – and by 5.2% in the June quarter of 2019-20.
India's GDP Slump (%)
Covid-19 lockdown takes a toll on economic growth.
The rate of India’s GDP growth had declined from 6.1% in FY19 to 4.2 per cent in FY20, the slowest in 11 years.According to government data, gross value added (GVA) for the country declined by 22.8%, manufacturing by 39.3%, and mining by 23.3%.
Gross fixed capital formation (GFCF) contracted 52.9%, electricity 7%, and construction activities 50.3%. Agriculture and allied activities, meanwhile, were a bright spot, growing 3.4% during the quarter.
US tariff effect: British carmaker Jagua…
16-06-2025
Jaguar Land Rover (JLR) has significantly reduced its profit forecast due to global automotive market uncertainty and new US tariffs. The company anticipates lower EBIT margins and near-zero free cash...
Read moreOnline payment: UPI transactions get fas…
16-06-2025
UPI payments are now significantly faster, with transaction times reduced to 10-15 seconds, thanks to a directive from NPCI. This improvement aims to enhance user experience on the widely used...
Read moreResilient India Inc: Indian companies to…
16-06-2025
ICRA projects stable revenue growth for India's industrial sector in Q1 FY26, driven by robust domestic demand. Operating profit margins are expected to remain steady, supported by lower interest costs...
Read moreIndian trade: Mechandise exports decline…
16-06-2025
India's exports reached $71.12 billion in May 2025, a 2.77% increase year-over-year, driven by strong services exports which rose to $32.39 billion. While merchandise exports saw a slight dip, the...
Read moreIran-Israel conflict impact: Basmati ric…
16-06-2025
Basmati rice prices, recently elevated due to increased exports, are anticipated to decline due to potential export reductions to Iran amidst geopolitical tensions. Iran constitutes a significant importer of Indian...
Read moreAuto sales steady in May: Two-wheelers, …
16-06-2025
May 2025 witnessed steady performance across vehicle segments in India, with total domestic sales reaching 20,12,969 units. Two-wheelers, particularly scooters, and passenger vehicles drove growth, while three-wheelers experienced a slight...
Read moreElectronics boom ahead! India's producti…
16-06-2025
India's electronics manufacturing sector is poised for significant growth, potentially reaching $282 billion to $500 billion by 2030, driven by global supply chain shifts and increasing domestic production. Mobile phones...
Read moreRBI rate cut effect: SBI gives big relie…
16-06-2025
State Bank of India reduced its lending rates by 50 basis points, effective June 15, 2025, lowering RLLR to 7.75% and EBLR to 8.15%. Fixed deposit rates for amounts up...
Read moreBig e-Aadhaar revamp on the cards! No mo…
16-06-2025
The Unique Identification Authority of India (UIDAI) is set to revamp e-Aadhaar, introducing a QR code-based system to eliminate need for physical copies. Updates, excluding biometrics, will be automated through...
Read moreInflation no longer a worry? May WPI inf…
16-06-2025
India's wholesale price index (WPI) inflation hit a 14-month low of 0.39% in May, driven by cheaper food and fuel, although experts foresee potential price hikes due to global tensions...
Read moreGold rate today: Gold prices surge to re…
16-06-2025
Gold rate today: Gold prices surged to a record high of Rs 1,01,078 per 10 grams, driven by global equity pressures and rising crude oil prices. Silver futures also remained...
Read moreAir India crash: Twenty-two Boeing 787 D…
16-06-2025
Following a recent Air India Dreamliner crash after departing from Ahmedabad, the airline is performing enhanced inspections on its Boeing 787 fleet, as instructed by the DGCA.
Read moreTracks of tomorrow: How smarter infrastr…
16-06-2025
A truly developed India by 2047 will not be possible without world-class logistics. And world-class logistics starts are only possible with a smart, connected, future-ready infrastructure.
Read moreTata Electronics builds India’s 1st semi…
16-06-2025
Tata Group is establishing India's first semiconductor fabrication facility in Dholera, Ahmedabad. Gujarat is supporting the project by building residential accommodations for Tata employees and vendors. The project includes 1,500...
Read moreSpiceJet shares soar: Airline shares jum…
15-06-2025
SpiceJet shares soared 5% following a remarkable 173% YoY surge in Q4 standalone PAT, reaching Rs 324.87 crore, marking its highest-ever quarterly profit. Despite a 16% dip in operational revenue...
Read moreGold price prediction: What's the gold r…
15-06-2025
Gold price prediction today: Amidst Israel-Iran tensions, gold prices have surged, crossing ₹1 lakh in India, driven by safe-haven demand. Escalating conflict overshadowed positive US-China trade talk news and strong...
Read moreIsrael-Iran tensions linger: Asian stock…
15-06-2025
Asian stock markets showed initial recovery signs after last week's losses due to escalating Israel-Iran tensions. Investor caution persists amid concerns over oil supplies, inflation, and monetary policy. Brent crude...
Read moreStock market today: Nifty50 ends above 2…
15-06-2025
Stock market today: The NSE Nifty increased by 227.90 points or 0.92 per cent to reach 24,946.50. The BSE Sensex rose by 677.55 points or 0.84 per cent, closing at...
Read moreTop stocks to buy: Stock recommendations…
15-06-2025
Stock market recommendations:Motilal Oswal Financial Services recommends Home First Finance and Kaynes as top stock picks for the week starting June 16, 2025. HomeFirst is focusing on emerging states and...
Read moreHero FinCorp raises Rs 260 crore in pre-…
15-06-2025
Hero FinCorp, the financial arm of Hero MotoCorp, has secured Rs 260 crore through a pre-IPO placement, leading to adjustments in its upcoming IPO. The fresh issue size has been...
Read more
