Need to strategize strategy to get out of lockdown: report
The lockdown has been implemented in the country since March 25 to control the corona virus, which has severely affected economic activities. The fourth phase of the lockdown is until Sunday 31 May. At the same time, speculation of Lockdown 5.0 has also started. In such a situation, India will have to devise a strategy to get out of lockdown to prevent a steady decline in growth rate. This has been said in a research report by SBI. India's gross domestic product (GDP) growth rate has come down to 4.2 percent in the fourth quarter of the last fiscal year 2019-20, its 11-year low. The growth rate in the fourth January-March quarter of the last financial year has come down to a low of 3.1 percent at 40 percent.
Prolonged lockdown will cause problems
SBI's research report ECORAP states, "Now we believe that we should make a strategy to get out of lockdown with prudence." The prolonged nationwide bandh would also result in prolonged decline in growth rate. The report states that prior experiences show that the pace of exit from the recession is quite slow. It takes five to ten years to reach the old stage of economic activity.
Agriculture sector performs well
The report on GDP data released on Friday said that the fourth quarter growth rate fell to a 40-quarter low of 3.1 percent due to the bandh in the last few days of March. The report said that when it comes to various sectors, only the agriculture sector performed well. The growth rate of agriculture and allied activities was 4 percent in the last financial year, compared to 2.4 percent in the previous financial year 2018-19.
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