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 crore, as against Rs 35.84 lakh crore 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.
After recording contrations in two successive quarters, India has technically entered into a recession with a likely contraction in its GDP during the July-September period, a report by the RBI had said earlier. RBI's Economic Activity Index estimated that India's GDP growth for the second quarter of the current financial year was negative and the GDP contracted by 8.6 per cent during the quarter.