While the country’s GDP previously fell by a record 23.9 percent in the first fiscal quarter, the economy is estimated to have substantially reduced the contraction to single digits in the second quarter.
GDP Q2 FY 2020-21: The Ministry of Statistics and Program Implementation (MOSPI) plans to publish the GDP results for the second fiscal quarter today. The Indian economy is expected to have seen a significant improvement in the July-September quarter after lockdown restrictions were gradually lifted. While the country’s GDP previously fell by a record 23.9 percent in the first fiscal quarter, the economy is estimated to have substantially reduced the contraction to single digits in the second quarter. However, the economy is likely to have slipped into a technical recession as GDP is expected to have contracted in the two consecutive quarters this fiscal year. The Reserve Bank of India has estimated a contraction of GDP of 8.6 percent in the second quarter, and the Bank of America calculated a contraction of 7.8 percent in the same quarter. Additionally, Morgan Stanley, ICRA, and Care Ratings have estimated a GDP contraction of 6%, 9.5%, and 9.9%, respectively, in the second quarter of the current fiscal year.
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