India's GDP has fallen by 23.9% for April-June Quarter. The data captures impact of a COVID-19 led lockdown that was imposed in India since the 3rd week of March. What does this dramatic fall in GDP mean and how should we be interpreting these numbers for present and future issues in our economy? BOOM Explains.
DK Joshi, Chief Economist, CRISIL, says that this fall will impact everyone differently. Initial hit to industries has been more than services like entertainment, tourism, sports etc, but manufacturing will rebound faster than services - services will have a longer slowdown impact. Consumption and investments have gone down significantly, lessening the potential of the economy, and unless this doesn't improve, the lockdown will have medium term impact.
Watch BOOM's Govindraj Ethiraj interview DK Joshi on the reasons why did Indian economy got hit more than other countries due to the lockdown.