IAS Gyan

Daily News Analysis

Slowdown to extend as virus goes rural

21st August, 2020 Economy

Context: India is staring at a protracted slowdown as corona virus cases reach its countryside


  • The world’s No.5 economy reports first-quarter GDP data on Aug 31 and according to a Reuter’s poll, it is likely to have contracted 20% over April-June.
  • It is forecasted to get shrink 5.1% in the year to March 2021, the weakest since 1979.


  • Sluggish consumer demand, slowdown in rural lending is cause for concern.

A mitigating factor:

  • Momentum coming from the agriculture sector owing to a normal monsoon and robust sowing is a positive.
  • Farmers planted almost 14% more between June 1 and July 31 than last year given good rains, while fertiliser output rose 4.2% in June.

India and agriculture (Data):

  • Almost half of India’s 1.38 billion populations rely on agriculture, with the sector accounting for 15% of economic output.


Reference: https://www.thehindu.com/business/Economy/slowdown-to-extend-as-virus-goes-rural/article32406458.ece