India’s gross home product or GDP contracted 7.5 % within the July-September interval compared to the identical interval final yr, based on information launched by the Nationwide Statistical Workplace on Friday.
The pandemic-induced lockdowns had led to a steep contraction of 23.9 % within the GDP for the April-June quarter as in comparison with the identical interval a yr in the past.
Score company Icra had mentioned the 12 months-on-12 months (YoY) contraction in Indian GDP (at fixed 2011-12 costs) is estimated to have narrowed appreciably to 9.5 % in Q2 FY2021 from 23.9 % in Q1 FY2021, because the financial system recovered from the lows of the pandemic-induced lockdown.
It mentioned the contraction within the Gross Worth Added (GVA) at fundamental costs is anticipated to have moderated significantly to eight.5 % within the July-September quarter from 22.8 % within the earlier three months.
The RBI has estimated that the financial system will contract by 9.5 % for the complete fiscal yr.
“India has entered a technical recession within the first half of 2020-21 for the primary time in its historical past with Q2 2020-21 prone to document the second successive quarter of GDP contraction,” as per the article titled ‘Financial Exercise Index’, authored by Pankaj Kumar of the Financial Coverage Division.
It, nevertheless, added that the contraction is “ebbing with gradual normalisation in actions and anticipated to be short-lived.”
The index is constructed from 27 month-to-month indicators utilizing a dynamic issue mannequin and means that the financial system rebounded sharply from Might/June 2020 with the reopening of the financial system, with trade normalising sooner than contact-intensive service sectors, it mentioned.
