“The deterioration in aggregate demand conditions in 2019-20 was exacerbated by contraction in investment, and moderation in government expenditure in H2. On the supply side, agriculture and allied activities accelerated, buoyed by the late surge in south-west monsoon rainfall and bountiful north-east monsoon precipitation,” the report said.
“However, industrial growth decelerated, led by a slowdown in manufacturing activity. Services sector activity moderated, pulled down by a slowdown in construction; trade, hotels, transport and communication; and public administration, defence and other services,” the report stated.
“The Covid-19 outbreak and the subsequent lockdown are expected to bring down the aggregate demand drastically, both in rural and urban areas. The government has announced a slew of measures to offset the adverse impact on rural demand. However, rural demand is expected to go down further at least in the near future.”