India’s economy in the second quarter (Q2FY21 July-September Quarter) has contracted 7.5%, otherwise said to be a recession.
The Gross Domestic Product (GDP) data that was released on Friday confirmed the case of a technical recession.
The first quarter of April-June (Q1FY21) had already seen a contraction of 23.9% with the beginning of the lockdown having badly hit the industrial operations and several companies forced to go inactive.
The country being the third-largest economy in Asia, started releasing quarterly GDP audit data in 1996, and this is the first time since then that the country has seen two successive GDP contractions.
For the upcoming quarters of the 2020-2021 financial year, it is estimated that the contraction might still be retained, may also be in double digits, but is expected to rebound as the pace of the economy picks up post the Covid-19 wave calms down.
Quarterly GVA at Basic Prices at Constant (2011-12) Prices for Q2 of 2020-21 is assessed at Rs 30.49 lakh crore, as against Rs 32.78 lakh crore in Q2 of 2019-20, depicting a contraction of 7 percent.
The business analysts had before expected a compression in the second quarter of the monetary.
They likewise expect a milder withdrawal of 3 percent in the October-December quarter. The main development of the Indian economy by 0.5 percent is normal in the January-March quarter one year from now.
Remarking on the Q2 GDP information, Chief Economic Advisor K Subramanian stated told that our economy is progressing nicely. Our economy was doing a long time before the pandemic hit us. The pandemic hit us in March and that was the explanation behind Q1 GDP number coming at – 23.9 percent.
Not long after the official GDP information was delivered, the opposition party and the Congress leader Rahul Gandhi hammered Prime Minister Narendra Modi.
He stated that under PM Modi, India’s economy is authoritatively in a downturn unexpectedly. All the more significantly, 3 crore individuals are as yet searching for work under MNREGA.
The RBI had foreseen a GDP contraction of 8.6 percent for the July-September quarter, earlier.
Union Finance Minister Nirmala Sitharaman declared Atmanirbhar Bharat 3.0 measures worth Rs 2.65 lakh crore.
The public authority has announced a worth of 30 lakh crore or an estimated 15 percent
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