India's core sector output shrank by a record 38.1 per cent for the month of April 2020, as the coronavirus-induced lockdown, played havoc with output.
The eight core sectors had expanded by 5.2 percent in April 2019, and has fallen by 9 per cent in the month of March, 2020. This is likely to see a sharp contraction in IIP.
For the final quarter of financial year 2019-20, the Indian economy grew at 3.1 percent, slowing down sharply from the previous quarter (October-December 2020) when the country's GDP grew at 4.7 percent. In a poll of 52 economists conducted by Reuters between 20 and 25 May, India's economy was expected to grow at 2.1 percent in March ended quarter.
GDP for the January-March quarter has come in far better at 3.1% than poll number of 2.2%.
The GDP data is indicative of broader economic performance and in the wake of Covid 19 pandemic led lockdown which started on March 25 the figure holds all the more importance.
And it is indeed a major official data that will provide for the impact of Covid 19 .
In April, core sector output declined sharply by 38.1 percent compared to 9 percent fall in the previous month, according to the growth rate of Index of Eight Core Industries released by the Ministry of Commerce and Industries on Friday. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).