India’s economy recovered to 7.5% contraction in the July-September quarter, shows gross domestic product (GDP) data released by the National Statistical Office (NSO).
Indian economy grew 4.4% in the year-ago period. India, which is Asia’s third largest economy, had witnessed a record 23.9% contraction in the previous three months ending 30 June. The June quarter was primarily the quarter that bore the brunt of a nationwide lockdown due to the Covid-19 pandemic.
Quarterly GVA at Basic Prices at Constant (2011-12) Prices for Q2 of 2020-21 is estimated at ₹30.49 lakh crore, as against ₹ 32.78 lakh crore in Q2 of 2019-20, showing a contraction of 7 percent.
GDP at Current Prices for H1 2020-21 is estimated at ₹85.3 lakh crore as against ₹ 98.39 lakh crore during the corresponding period of previous year, showing a contraction of 13.3 percent in H1 2020-21 as against growth of 7 percent during the same period last year.
The performance of manufacturing was a positive surprise in Q2. It recorded positive growth of 0.6% in Q2 as compared to 39.3% contraction in Q1
The next release of quarterly GDP estimates for the quarter October-December, 2020 (Q3FY21) will be on 26 February, 2021.
- Eight core industries’ growth contracts for eighth straight month in Oct
India’s infrastructure output contracted 2.5% in October as against 0.8% contraction in September, falling for an eighth straight month, government data on Friday showed.
Infrastructure output, which comprises eight sectors including coal, crude oil and electricity and accounts for nearly 40% of industrial output, contracted 13% in the seven months through October from a year earlier, the data showed.
Coal, fertilisers, electricity and cement sectors showed growth during the month.
- Apr-Oct fiscal deficit tops 126% of full year target
India’s fiscal deficit in the seven months to end-October stood at ₹9.53 trillion ($128.9 billion), or 126.7% of the budgeted target for the whole fiscal year, government data showed on Friday.
Net tax receipts were ₹5.76 trillion, down 15.7% from a year ago, while total expenditure was ₹16.6 trillion, the data showed.
The deficit is predicted to exceed 8% of GDP in the 2020/21 fiscal year that ends in March 2021, economists said, from initial government estimates of 3.5%, mainly due to a sharp economic contraction triggered by the coronavirus pandemic.