The Gross Domestic Product (GDP) for the second quarter (Q2) from July to September contracted 7.5%, government data showed on Friday.
“GDP at constant (2011-12) prices in Q2 of 2020-21 is estimated at Rs 33.14 lakh crores, as against Rs 35.84 lakh crores 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 & Programme Implementation said.
Though this is a rebound from earlier quarter but with this contraction Indian economy has hit technical recession for the first time.
According to the Ministry of Statistics and Programme Implementation, gross value added (GVA) came in at minus 7%. The economy had contracted by 23.9% in the April to June quarter (Q1 FY21), marking the first contraction in more than 40 years as COVID-19 pandemic compressed consumer demand and private investments.
“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 per cent as compared to 4.4 per cent growth in Q2 2019-20,” said the Ministry of Statistics and Programme Implementation in a statement.
” Quarterly GVA at Basic Prices at Constant (2011-12) Prices for Q2 of 2020-21 is estimated at Rs 30.49 lakh crore, as against Rs 32.78 lakh crore in Q2 of 2019-20, showing a contraction of 7 per cent,” it added.
The statement said during the quarter trade, hotels, transport & communication saw a dip of -15.6 per cent while public administration, defence and other services by -12.2 per cent. The financial, real estate and professional services sector contracted by 8.1 per cent and construction by 8.6 per cent.
Some sectors have bounced back with resumption of economic activities. The electricity, gas, water supply and other utility services have shown a growth of 4.4 per cent; agriculture, forestry and fishing sector at 3.4 per cent and manufacturing sector showed a marginal growth of 0.6 per cent.
The economy was already slowing before the pandemic struck, growing only 4.2 per cent in the last fiscal year, its slowest pace in 11 years.