Indian economy likely to see record quarterly slump as pandemic hits
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Tuesday
August 16, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
TUESDAY, AUGUST 16, 2022
Indian economy likely to see record quarterly slump as pandemic hits

Global Economy

Reuters
31 August, 2020, 09:35 am
Last modified: 31 August, 2020, 10:55 am

Related News

  • RBI may hike repo rate to 6% by 2022, pace likely to slow down: Report
  • India's economic outlook at the mercy of monsoon
  • India to remain among fastest growing economies even as IMF cuts growth forecast
  • India cenbank acts to enhance foreign fund inflows, stabilise rupee
  • Indian shares rise as Bajaj Finance boosts financials, crude oil cools

Indian economy likely to see record quarterly slump as pandemic hits

India has reported over three and a half million cases of the novel coronavirus - third behind only the United States and Brazil

Reuters
31 August, 2020, 09:35 am
Last modified: 31 August, 2020, 10:55 am
Photo AFP via India Times
Photo AFP via India Times

India's economy likely suffered its largest quarterly slump on record, data is expected to show on Monday, as coronavirus-related lockdowns add to already-declining consumer demand and investment.

Economists in a Reuters poll predicted that gross domestic product in world's fifth-largest economy will contract by 18.3% in the June quarter, compared to 3.1% growth in the previous quarter, the worst performance in at least eight years.

The same economists predict a contraction of 8.1% and 1.0% in the September and December quarters respectively, which would dash any hopes of an economic recovery this year.

India has reported over three and a half million cases of the novel coronavirus - third behind only the United States and Brazil.

Continuing restrictions on transport, educational institutions and restaurants - and weekly lockdowns in some states - have hit manufacturing, services and retail sales, while keeping millions of workers out of jobs.

Shilan Shah, India economist at Capital Economics, Singapore, said in a note on Friday the economic damage caused by pandemic-related lockdowns was much worse in India than any other country in Asia.

"Timely indicators show that the post-lockdown recovery is now stalling, underscoring the long and difficult road ahead for India's economy," said Shah, who is predicting a 15% contraction in June quarter.

Some private economists said the fiscal year that began in April could see a contraction of nearly 10%, the worst performance since India won independence from British colonial rule in 1947.

Prime Minister Narendra Modi announced a $266 billion stimulus package in May, including credit guarantees on bank loans and free food grains to poor people, but consumer demand and manufacturing are yet to recover.

The Reserve Bank of India, which has reduced the benchmark repo rate by a total of 115 basis points since February, kept rates on hold earlier this month amid rising inflation.

Policymakers said federal and state governments are unable to increase spending, following a more than 40% fall in tax receipts in the June quarter.

However, following normal monsoon rains the farm sector, which accounts for 15% of economic output, may give hope that rural economy will be able to support millions of migrant workers, who returned to their villages from the cities when the lockdown began. 

Top News / World+Biz

Indian economic slowdown / Indian economy / India economy / Economic Impact of Coronavirus / Economic Effect of Covid-19 / Coronavirus outbreak

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • This is how people are choked with rising cost of living
    This is how people are choked with rising cost of living
  • File photo. Forty-four countries imported LNG last year, almost twice as many as a decade ago. Photo: Asim Hafeez/Bloomberg
    Unaffordability of LNG may leave new import terminals redundant: IEEFA
  • Photo: TBS
    5 crushed to death as BRT girder falls on car in Uttara

MOST VIEWED

  • The corporate logo of financial firm Morgan Stanley is pictured on a building in San Diego, California September 24, 2013. REUTERS/Mike Blake
    Goldman, Morgan Stanley seek to end investors' Archegos-linked lawsuits
  • A small toy figure and gold imitation are seen in front of the Polyus logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration
    Russia's Polyus plans bond issue denominated in yuan
  • Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 2, 2022. REUTERS/Andrew Kelly
    Global stocks fall, US dollar gains after surprise China data
  • Emptier than we thought.Photographer: SeongJoon Cho/Bloomberg
    Oil demand forecasts aren't as bullish as they seem
  • The Federal Reserve building is pictured in Washington, DC, US, August 22, 2018. REUTERS/Chris Wattie/File Photo
    As Fed warns of turbulence ahead, markets remove their seat belts
  • Walmart shopping carts are seen on the parking lot ahead of the Thanksgiving holiday in Chicago, Illinois, US November 27, 2019. Photo:Reuters
    More pain or rebound? Investors brace for retail earnings

Related News

  • RBI may hike repo rate to 6% by 2022, pace likely to slow down: Report
  • India's economic outlook at the mercy of monsoon
  • India to remain among fastest growing economies even as IMF cuts growth forecast
  • India cenbank acts to enhance foreign fund inflows, stabilise rupee
  • Indian shares rise as Bajaj Finance boosts financials, crude oil cools

Features

TBS Sketch

Bangabandhu and the spirit of Liberation War were killed in 1975

7h | Supplement
The macabre multicide: How we failed our supreme leader

The macabre multicide: How we failed our supreme leader

10h | Supplement
Bangabandhu Sheikh Mujibur Rahman with his eldest daughter Sheikh Hasina and his grandson Sajeeb Wazed at his Dhanmondi residence. Photo: Achieve

The darkest night of 15 August

12h | Supplement
As long as the Padma and the Meghna will flow…

As long as the Padma and the Meghna will flow…

13h | Supplement

More Videos from TBS

Public pay homage to Bangabandhu

Public pay homage to Bangabandhu

2h | Videos
What will happen if Ukraine's Zaporizhia nuclear plant explodes?

What will happen if Ukraine's Zaporizhia nuclear plant explodes?

3h | Videos
Bangabandhu Sheikh Mujibur Rahman, the undisputed leader

Bangabandhu Sheikh Mujibur Rahman, the undisputed leader

3h | Videos
How is Bangladesh benefited from receiving India's daily import quota?

How is Bangladesh benefited from receiving India's daily import quota?

4h | Videos

Most Read

1
Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 
Banking

Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 

2
From left Afzal Karim, Murshedul Kabir and Mohammad Jahangir
Banking

Sonali, Agrani and Rupali banks get new MDs

3
Photo: Collected
Transport

Will Tokyo’s traffic model solve Dhaka’s gridlocks?

4
Representational Image. Photo: Collected
Bangladesh

Air passengers should plan extra commute time to airport: DMP

5
Arrest warrant against Habib Group chairman, 4 others 
Crime

Arrest warrant against Habib Group chairman, 4 others 

6
Ambassador of Switzerland to Bangladesh Nathalie Chuard. Photo: Courtesy
Bangladesh

Bangladesh never asked for particular info from Swiss bank: Ambassador

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]