GDP shrinkage: It wasn't just Covid-19 lockdown that brought us here

GDP shrinkage is the cost of continued virus spread

The National Statistical Office has now released its estimates of gross domestic product (GDP) for the first quarter of the ongoing fiscal year, 2020-21. The months between April and June coincided with the height of the initial lockdown imposed by the Union government to deal with the spread of the pandemic, which severely impacted economic activity. Most predictions for GDP were that it would contract by 19-20 per cent, year-on-year, for the quarter as a response. In fact, the compression was more severe in the first estimates — 23.9 per cent at constant prices. This is unprecedented in India’s recent