Priyanka Gandhi attacks Centre over GDP; highlights Rahul Gandhi's 'economic tsunami' jibe

Attacking the government over a sharp decline in the GDP numbers, Congress leader Priyanka Gandhi Vadra on Tuesday highlighted Rahul Gandhi's prediction. On Monday, the government data revealed that the Indian economy had contracted by 23.9% in the April to June quarter (Q1 FY21).

Taking to Twitter, Priyanka stated that Rahul Gandhi had warned about the economic tsunami six months back, adding that the relief package was introduced for namesake. 
 

READ: UK economy crashes into deepest recession as GDP slumps 20.4% in second quarter

Congress slams Finance Minister

On August 28, Congress spokesperson Randeep Surjewala lambasted Union Finance Minister Nirmala Sitharaman for attributing the crisis in the Indian economy to the COVID-19 situation. Speaking after the 41st GST Council meeting on August 27, Sitharaman observed that the economy is facing an extraordinary 'Act of God' situation, which may lead to contraction of the economy. According to Surjewala, the economy had faced setbacks even before the advent of the novel coronavirus crisis.

For instance, he pointed out that the Gross Domestic Product declined for 6 consecutive quarters as of 2019. Moreover, Surjewala highlighted that there was weak demand in the previous year as well. He alleged that the Centre was trying to hide the failure of its economic policies.

READ: Chidambaram slams govt over GDP fall, says 'will take months to register positive growth'

India's GDP crashes to -23.9% for Q1

In a devastating development, India's GDP for the first quarter of FY 21 stood at -23.9% as per data released by the National Statistical Office (NSO) on Monday, making it the worst contraction on record. In May, amid the nation-wide COVID-19 lockdown, India's GDP growth for the January-March quarter (Q4) 2019-20 stood at 3.1%. Overall FY 19-20 GDP stood at 4.2%, hitting an 11-year low. India, currently has extended its lockdown in containment zones till September 30, freeing up most restrictions.

As per market reports, core sectors' growth stood at - Industries at -381%, Services at -20.6%, Manufacturing at -39.3 %, Trade, Hotels at -47. Agriculture has been the only sector to see growth clocking a 3.4% increase, due to rural sector remaining mostly free from lockdown. CRISIL had predicted that India's fourth recession since independence, the first since liberalisation and perhaps the worst to date, is here.

READ: 'Worst GDP in India's history': Rahul Gandhi castigates Centre for ignoring March warning

READ: India's GDP crashes to -23.9% in Q1- FY21 due to COVID-19; worst contraction till date