Act of God, peacock photo shoot trend after Indian economy shrinks by 23.9 % in April-June 2020; RBI says GDP to contract in the second quarter too


The Centre’s Narendra Modi government is facing widespread criticism after its own data revealed that the country’s economy had shrunk by a whopping 23.9% in the first quarter of the financial year 2020-21.

The current slump in the economy is the worst on record in India’s history with the coronavirus-related lockdowns adversely impacting the already-declining consumer demand and investment. Prime Minister Narendra Modi had announced a nationwide lockdown by giving a notice of just four hours in March.

The official data released by the government on Monday showed how the latest contraction was the sharpest slump since quarterly figures began to be published in 1996 and worse than what was expected by most analysts.

The revelation evoked a sharp reaction from the opposition leaders in India with many targeting the flawed economic policies and inept handling of the economy by the central government.

Rajasthan Chief Minister Ashok Gehlot said, “India’s Q1 GDP hs contracted by a massive 23.9%, wch is the worst contraction on record. Country’s economy is sinking since long but NDA Govt hs not taken any steps to improve situation. All suggestions, warnings ignored completely. People r suffering due to Govt’s inefficiency.”

Many also took a swipe at Finance Minister Nirmala Sitharaman by mocking her recent statement blaming the ‘Act of God’ for the slump in the economy. Others also questioned PM Modi’s priority by taking a dig at his recent PR exercise showcasing his relationship with peacocks.

A news report by PTI said that the manufacturing shrank 39.3 %, construction contracted 50.3 %, mining output fell 23.3 % and the electricity and gas segment dropped 7 % in the same period. What’s even more frightening is the economic forecast by India’s federal bank, Reserve Bank of India, which said last week in its report that the economy was likely to contract even in the second quarter (July-September).


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