Faulty economic policies and financial mismanagement by the BJP government at the Centre led to a steep decline of 23.9 per cent in GDP in the first quarter of the current financial year, former Rajasthan Deputy Chief Minister Sachin Pilot said on Tuesday. Expressed concern over the decline in the Gross Domestic Product (GDP), the Congress leader said the economy of the country has reached such a phase wherein it will have a very bad effect on the common people, including labourers, farmers and the youth.
India's economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment. The GDP contraction in the world's fifth-largest economy compared with 3.1 per cent growth in the preceding January-March quarter and 5.2 per cent expansion in the same period a year back, according to official data released on Monday.
This is the sharpest contraction since quarterly figures started being published in 1996 and worse than what was expected by most analysts. Pilot said the decision to impose lockdown to combat the novel coronavirus was taken by the Centre without any preparation, which directly impacted the unorganised sector and brought economic activity to a halt.
He said that the Centre should take concrete steps to bring the economy back on track soon.