India’s economic growth rate contracted 7.5 percent during the period from July to September, government data released on Friday said.
The figures released by India’s federal national statistical office (NSO) showed the gross domestic product (GDP) growth in the July to September period (Q2 of 2019-20 fiscal year) has shown contraction of 7.5 percent.
“GDP at Constant (2011-12) Prices in Q2 of 2020-21 is showing a contraction of 7.5 percent as compared to 4.4 percent growth in Q2 of 2019-20,” said a statement issued by the ministry of statistics and programme implementation.
With this Indian economy has officially entered a technical recession as two consecutive quarters of negative growth in GDP have been recorded.
The real GDP for April-June 2020 (Q1) contracted 23.9 percent, the steepest fall ever (and the first contraction in 40 years).
Agriculture sector was the main driver of the economy as it grew 3.4 percent year on year. The manufacturing sector rose 0.6 percent in July-September.
Electricity, water, gas and other utility services also rose 4.4 percent.
The Indian economy received a setback due to the ongoing COVID-19 pandemic as a nationwide lockdown imposed on March 25 to contain its spread. Though it has been relaxed now, it badly hit the Indian economy and resulted in the loss of jobs.
The current data is reflective of the countrywide lockdown and the income shock experienced by households and firms due to the ongoing COVID-19 pandemic.