Q2 GDP LIVE: Will India dodge double-digit economic contraction? GDP figures to be released today
While previously, the country’s GDP shrank by a record 23.9 per cent in the fiscal’s first quarter, the economy has substantially narrowed contraction to a single digit in Q2.
GDP Q2 FY 2020-21: India’s economy shrank 7.5 per cent in the fiscal second quarter, after seeing a record contraction of 23.9 per cent in Q1. With the contraction in two successive quarters, India has entered into a technical recession in the first half of the current fiscal. However, the economy substantially narrowed contraction to a single digit in Q2. The manufacturing and construction sectors made a jump in the July-September quarter. While the fall in construction sector narrowed from 50.3 per cent in Q1 to 8.6 per cent in Q2, the manufacturing sector registered a 0.6 per cent growth in Q2, against a contraction of 39.3 per cent in Q1. The mining sector also improved by reducing the contraction of 23.3 per cent in Q1 to 9.1 per cent in Q2. On the other hand, the agriculture sector once again registered a growth of 3.4 per cent in Q2.
Meanwhile, the output of core industries shrank more in October, than in September. It shrank 2.5 per cent in October, against a fall of 0.8 per cent in the previous month.