Covid Effect: Indian Economy Contracts By 23.9 Per Cent In Q1 Of FY21, Farm Sector Provides Silver Lining

The Indian Economy contracted by a record 23.9 per cent in the first quarter of Financial Year 2020-21 which ended in the first quarter of Financial Year 2020-21, Livemint has reported.

Key sectors like manufacturing, construction and trade sectors saw a contraction of 39.3 per cent, 50.3 per cent and 47 per cent respectively.

This contraction is a result of the Covid-19 pandemic which has wrecked havoc on the economies across the globe.

The farm sector's performance has provided a silver lining amid the gloom, by showing a growth of 3.4 per cent in the first quarter. The sector was helped by factors like favourable monsoon rains, higher kharif sowing, better water availability and robust Rabi production.

The contraction in July for eight infrastructure sectors in July stands at 9.6 per cent in July as compared to 12.9 per cent in June.