India's Q2FY21 GDP contracts 7.5%, manufacturing sees recovery amid COVID-19 pandemic
India’s Gross Domestic Product (GDP) contracted 7.5 per cent in the July-September quarter, data released by the government on Friday showed. The GDP at constant (2011-12) prices in Q2 of 2020-21 is estimated at Rs 33.14 lakh crores, as against Rs 35.84 lakh crores in Q2 of 2019-20, showing a contraction of 7.5% as compared to 4.4% growth in Q2 of 2019-20, the Ministry of Statistics and Programme Implementation said. The Reserve Bank of India’s internal model had anticipated a GDP contraction of 8.6 per cent for the July-September quarter.
The country’s economy had slumped to a massive contraction of 23.9 per cent April-June quarter in the wake of nationwide lockdown announced to check the spread of coronavirus infection.
RBI Governor Shaktikanta Das had on Wednesday said that India’s economy has exhibited a stronger pick-up in momentum of recovery than expected. Das cited that a multi-speed normalisation of activity in Q2FY21, after the country witnessed a sharp contraction in GDP by 23.9 per cent in Q1FY21.
“After witnessing a sharp contraction in the economy by 23.9 per cent in Q1 and a multi-speed normalisation of activity in Q2, the Indian economy has exhibited stronger than expected pick-up in momentum of recovery,” Das had said.
