India's GDP Contracts 7.5%, Technical Recession Confirmed
Two weeks after a team of Reserve Bank of India (RBI) economists said India is in a technical recession, Gross Domestic Product (GDP) data released on Friday November 27 officially confirmed the same. The GDP contracted 7.5 percent in the July-September quarter of 2020-21.
The official GDP data released for the second quarter (Q2) by National Statistical Office (NSO) showed that the Indian economy has contracted in two consecutive quarters -- called technical recession
-- for the first time since 1996, when the country began recording quarterly growth rates.
The GDP at constant (2011-12) prices in Q2FY21 has been estimated 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, according to the official NSO data.
"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," it added.
Soon after the official GDP data was released, Congress leader Rahul Gandhi slammed the central government and Prime Minister Narendra Modi. He said, "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."
"The economy cannot be ordered to grow by diktats. PM needs to first understand this basic idea," he added.
Earlier, in the April-June quarter, the Indian economy had contracted by a whopping 23.9 per cent on the back of a strict coronavirus lockdown from the last week of March till early May.
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