Economy

Indian economy under recession, GDP contracts by 7.5 percent

In the July-September quarter of this fiscal, the Indian economy contracted 7.5 per cent, official data showed on Friday.

According to data released by the National Statistical Office (NSO), the gross domestic product (GDP) had expanded by 4.4 per cent in the corresponding July-September period of 2019-20.

The economy had shrunk by an unprecedented 23.9 per cent in the first quarter of this fiscal due to the coronavirus pandemic and resultant lockdowns.

Meanwhile, China’s economy grew by 4.9 per cent in July-September this year, faster than the 3.2 per cent growth in April-June 2020.

Though the contraction in July-September pushed India into its first technical recession, based on records going back to 1996, a sharp recovery held out hopes for the economy turning around before the end of the fiscal year, news agency PTI reported.

On Thursday, the Reserve Bank of India (RBI) Governor Shaktikanta Das stated that the recovery from the lockdown has been stronger than expected and the economy could show growth in the fourth quarter.

 

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