India’s GDP Contracts 7.5%, Technical Recession Confirmed
Recently, a team of Reserve Bank of India (RBI) economists declared that India is in a technical recession.
On Friday, not more than two weeks after it, the Gross Domestic Product (GDP) data released officially confirmed the same. In the July-September quarter of 2020-21, the GDP contracted 7.5 per cent.
As per the official GDP data for the second quarter (Q2) released by the National Statistical Office (NSO) reveals that the Indian economy has contracted in two consecutive quarters, called technical recession.
Since 1996, for the first time, when the country recorded quarterly growth rates.
According to the official NSO data, the GDP at constant (2011-12) prices in Q2FY21 has evaluated at Rs 33.14 lakh crore, as against Rs 35.84 lakh crore in Q2 of 2019-20, showing a contraction of 7.5 per cent.
It also added that “Quarterly GVA at Basic Prices at Constant (2011-12) Prices for Q2 of 2020-21 is estimated at Rs 30.49 lakh crore, as against Rs 32.78 lakh crore in Q2 of 2019-20, showing a contraction of 7 per cent.”
Rahul Gandhi, Congress leader blamed the central government and Prime Minister Narendra Modi. He mentioned that “Under PM Modi, India’s economy is officially in a recession for the first time ever. More importantly, 3 crore people are still looking for work under MNREGA.”
Rahul further added “The economy cannot be ordered to grow by diktats. PM needs to first understand this basic idea.”
In the April-June quarter of this year, the Indian economy had contracted by a major 23.9 per cent amidst strict coronavirus lockdown which lasted from the last week of March till early May.