After contracting for two straight quarters, Indian economy witnessed a marginal growth of in the October-December quarter. India’s gross domestic product (GDP) grew 0.4% year-on-year, official data released by the National Statistics Office showed on Friday. Indian economy had grown at the rate of 4.7% in the same quarter last year.
India had slipped into a technical recession during July-September when GDP fell for two successive quarters. In the July-September quarter, India’s GDP contracted 7.5% year-on-year. The economy shrank 23.9% year-on-year in the April-June quarter in the wake of coronavirus outbreak and nationwide lockdown to prevent the virus. NSO revised GDP growth for June and September quarters to -24.4% and 7.3% respectively against earlier estimates of -23.9% and -7.5%.
Gross value added (GVA) grew 1% year-on-year in the quarter under review.
Reserve Bank of India earlier indicated that the Indian economy has further recovered and estimates the GDP to turn positive in the third quarter.
“GDP at Constant (2011-12) Prices in Q3 of 2020-21 is estimated at ₹36.22 lakh crore, as against ₹36.08 lakh crore in Q3 of 2019-20, showing a growth of 0.4 per cent,” NSO said.
India’s GDP is expected to return to expansion territory in October-December quarter, growing by 0.8 per cent year-on-year (YoY), multinational bank Barclays had said earlier.