India’s Gross Domestic Product (GDP) for the October-December quarter (Q3) grew by 0.4 percent after two consecutive quarters of contraction, according to the second advanced and quarterly estimates of GDP released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
In a press release, MoSPI noted that 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, showing a growth of 0.4 percent.
Although this marks an exit from a period of recession, the GDP for the entire financial year 2020-21 (FY21) is seen contracting by 8 percent.
With pent-up demand, festive spending, and a jump in government expenditure boosting growth in the economy, sectors such as manufacturing, construction, and agriculture have reportedly recovered.
In the previous two quarters, the government had revised its GDP projections. As per revised estimates, India’s GDP contracted by 7.3 percent in the July-September quarter (Q2), whereas the previous estimate was a 7.5 percent contraction.
In the April-June quarter (Q1), the GDP contracted by a sharp 24.4 percent instead of the earlier reported 23.9 percent.
This particular contraction, brought about by the nationwide lockdown in response to the COVID-19 pandemic, marks the worst in the history of the Indian economy.