India's economy shrunk 7.5 per cent in the three months through September, showed official data released on Friday. Recession is defined as two successive quarters of contraction.Even as Asia's second largest economy slipped into recession, the contraction was lower-than-expected, signalling faster recovery and spurring hopes of growth coming back in Q3FY21 or Oct-Dec period. GROWTH, SECTOR BY SECTOR Sector Q2 FY21 % Growth Q1 FY21 % Growth 1.Agriculture, forestry and fishing 3.4 3.4 2.Mining and quarrying -9.1 -23.3 3.Manufacturing 0.6 -39.3 4.Electricity, gas, water supply, other utility services 4.4 -7 5. Construction -8.6 -50.3 6.Trade, hotel, transport, communication and services related to broadcasting -15.6 -47 7.Financial, real estate and professional services -8.1 -5.3 8.Public administration, defence and other services -12.2 -10.3 GVA at basic prices -7 -22.8 GDP -7.5 -23.9 *Source: National Statistical Office … [Read more...] about India slips into its first technical recession since 1996; growth seen returning
Post recession economic recovery
India's gross domestic product (GDP) for the second quarter ended September 30 contracted by 7.5%, government data showed on Friday. However, this pace of contraction is considerably slower than the slump of 23.9% in the previous quarter.Even though certain green shoots are visible in the economy, India's GDP figure has remained in negative zone for two successive quarters.The GDP recorded the steepest fall in more than 40 years in June quarter due to lockdown measures, thereby leading to expectations of the GDP growth being a negative 14% for the full fiscal. However, resumption of economic activities lately may have resulted in some revisions.The recent development on Covid-19 vaccine has boosted stock markets to repeated record highs and fueled hopes of a pick-up in economic activity. That, coupled with festive-led demand, has lifted optimism amongst economists over the past month.However, a resurgence in coronavirus cases in some parts of the country leading to renewed lockdowns, … [Read more...] about India officially in recession as GDP contracts by 7.5% in Q2
According to rating agency ICRA, the spikes in production seen in various sectors in the month of October are an exaggeration of the true recovery on the ground, as those have been driven by a large component of pent-up demand that may not sustain after the festive period is over. … [Read more...] about India Q2 GDP: Are signs of revival real and what do latest numbers mean for FY21?