India Moves Out Of Recession, GDP Up 0.4% In Dec Quarter
India’s GDP grew by 0.4 per cent in the October to December quarter (Q3 FY21), marking a return to positive zone after two-quarters of recession but showing a lingering weakness in the economy, government data showed on Friday.
A sharp improvement in the Covid-19 situation and rising public spending are the two factors behind uptick.
“The GDP at constant (2011-12) prices in Q3 of 2020-21 is estimated at Rs 36.22 lakh crore as against Rs 36.08 lakh crore in Q3 of 2019-20, showing a growth of 0.4 per cent,” said the National Statistical Office (NSO).
A continuing fall in domestic consumption is seen as a strong reason behind the sluggish pace.
According to second advance estimates of economic growth, the real GDP in current financial year (2020-21) is estimated at negative 8 per cent as compared to growth rate of 4 per cent in 2019-20.
Agriculture sector is estimated to see a growth of 3 per cent in FY21 as compared to 4.3 per cent in 2019-20.
The manufacturing sector is likely to contract by 8.4 per cent during FY21. More worryingly, services sectors like trade, hotel, transport are projected to contract by 18 per cent.
However, electricity is likely to grow at 1.8 per cent.
The economy contracted by 23.9 per cent in the April to June quarter (Q1 FY21) and by 7.5 per cent in the July to September quarter (Q2 FY21) as normal activities were disrupted due to nationwide coronavirus lockdowns. (ANI)