It was no secret that India\u2019s Q1 GDP growth rate for FY 2021 would be negative. And while the GDP contraction was expected to be within 20%, it defeated predictions by clocking at -23.9%! This is the worst on record. So, who\u2019s to blame? Why did this happen? What role do the agriculture, rural, and informal sectors play in the GDP? And, what can we expect in the days to come? We answer these and other questions in this article.<\/p>\n\n\n\n
This article covers:<\/strong><\/p>\n\n\n\n Overview<\/a><\/p>\n\n\n\n What is to be blamed for the contraction in GDP growth rate?<\/a><\/p>\n\n\n\n What does a contraction in the GDP growth rate mean?<\/a><\/p>\n\n\n\n Why did the Q1 FY2021 GDP contract?<\/a><\/p>\n\n\n\n Comparing the key indicators of economic growth y-o-y<\/a><\/p>\n\n\n\n But what causes the gross domestic production contraction?<\/a><\/p>\n\n\n\n Why did the demand by each constituent of the GDP fall?<\/a><\/p>\n\n\n\n What\u2019s the current scenario?<\/a><\/p>\n\n\n\n How much can government spending help?<\/a><\/p>\n\n\n\n Role of the agricultural and rural sectors in driving the GDP growth?<\/a><\/p>\n\n\n\n The role of the informal sector in GDP growth rate<\/a><\/p>\n\n\n\n What to expect for the next quarter and those that follow?<\/a><\/p>\n\n\n\n What is the solution, are citizens responsible too?<\/a><\/p>\n\n\n\n Conclusion<\/a><\/p>\n\n\n\n Table of Contents<\/p>\n<\/span><\/div>\n