GDP grows 0.4 per cent in December quarter, India exits technical recession
GDP at constant (2011-12) prices in Q3 of 2020-21 is estimated at Rs 36.22 lakh crore, as against Rs 36.08 lakh crore in Q3 of 2019-20.
By ET Bureau | Updated:
India’s GDP grew 0.4% in Q3 of FY21, returns to growth after two consecutive quarters of decline
NEW DELHI: The economy grew a modest 0.4% in the October-December quarter, data released by the statistics office on Friday showed, joining a select club of countries including China, Taiwan and Vietnam that have seen positive year-on-year growth in the period and reversing a technical recession of the two previous quarters due to the Covid-19 pandemic.
The economy had grown 3.3% in the corresponding period of 2019. An ET survey of economists had estimated a median 0.32% growth in the fiscal third quarter.
Continue Fiscal Measures: Experts For the ongoing financial year, GDP is seen contacting 8%, deeper than the 7.7% decline forecast earlier, implying a 1.1% contraction in the January-March quarter from a year ago.
The revised data showed a deeper 24.4% contraction in the worst hit April-June quarter against 23.9% estimated earlier, partly explaining the downward revision in full-year forecast.
The July-September quarter was revised up marginally to -7.3% from -7.5% earlier.
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Financial services posted a surprise rebound, as manufacturing joined agriculture in growth, but the overall services sector contracted 1%, underlining the importance of faster vaccinations to revive contact-based sectors such hospitality and retail.
The government said the positive growth rate was “reflection of a further strengthening of V-shaped recovery that began in Q2 of 2020-21” but warned that India was still not out of the woods.
