NEW DELHI, Nov 28 (NNN-PTI) – India’s economic growth rate contracted 7.5 percent during the period from July to Sept, government data yesterday, showed.
The figures, released by India’s federal national statistical office (NSO), showed the gross domestic product (GDP) growth, in the July to Sept period (Q2 of 2019-20) has shown contraction of 7.5 percent.
“Prices in Q2 of 2020-21, is showing a contraction of 7.5 percent, as compared to 4.4 percent growth in Q2 of 2019-20,” said a statement issued by the ministry of statistics and programme implementation.
With this, the Indian economy officially entered a technical recession, as two consecutive quarters of negative growth in GDP have been recorded.
The real GDP for April-June 2020 (Q1) contracted 23.9 percent, the steepest fall ever (and the first contraction in 40 years).
Agriculture sector was the main driver of the economy, as it grew 3.4 percent year on year. The manufacturing sector rose 0.6 percent in July-Sept. Electricity, water, gas and other utility services, also rose 4.4 percent.
The Indian economy received a setback, due to the ongoing COVID-19 pandemic, as a nationwide lockdown imposed on Mar 25, continues its spread. Though it has been relaxed now, it badly hit the Indian economy and resulted in the loss of jobs.
The current data is reflective of the countrywide lockdown and the income shock experienced by households and firms, due to the ongoing COVID-19 pandemic.– NNN-PTI
