India’s economy rebounded to a 7.5% contraction in the July-September quarter, gross domestic product (GDP) data released by the National Statistics Office (NSO) shows.
The Indian economy grew 4.4% in the same period of the previous year. India, which is Asia’s third-largest economy, had seen a record 23.9% contraction in the previous three months ending June 30. The June quarter was primarily the quarter that suffered the worst part of the national shutdown due to the Covid-19 pandemic.
Quarterly GVA at basic prices at constant prices (2011-12) for the second quarter of 2020-21 is estimated at ₹Rs 30.49 million lakh, compared to ₹ Rs 32.78 crore lakh in the second quarter of 2019-20, showing a 7 percent contraction.
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GDP at current prices for the first half of 2020-21 is estimated at ₹85.3 crore lakh compared to ₹ Rs 98.39 crore lakh during the corresponding period of the previous year, showing a contraction of 13.3 per cent in the first half of 2020-21 compared to a growth of 7 per cent during the same period last year.
Manufacturing performance was a positive surprise in the second quarter. It registered a positive growth of 0.6% in the second quarter compared to a contraction of 39.3% in the first quarter.
The next publication of quarterly GDP estimates for the October-December 2020 quarter (Q3FY21) will be on February 26, 2021.
- Eight core industries growth contracts for the eighth consecutive month in October
India’s infrastructure production contracted 2.5% in October versus a 0.8% contraction in September, falling for the eighth consecutive month, government data showed on Friday.
Infrastructure production, which comprises eight sectors including coal, crude oil and electricity and accounts for nearly 40% of industrial production, contracted 13% in the seven months to October from a year earlier, the data showed.
The coal, fertilizers, electricity and cement sectors showed growth during the month.
- The fiscal deficit from April to October exceeds 126% of the target for the whole year
India’s fiscal deficit in the seven months to the end of October stood at ₹9.53 trillion ($ 128.9 billion), or 126.7% of the budgeted target for the entire fiscal year, government data showed on Friday.
Net tax revenue was ₹5.76 trillion, 15.7% less than a year ago, while total spending was ₹16.6 trillion, the data showed.
The deficit is projected to exceed 8% of GDP in fiscal year 2020/21 ending in March 2021, economists said, based on initial government estimates of 3.5%, mainly due to a strong economic contraction caused by the coronavirus pandemic.
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