India Q2 GDP Data Key Highlights: The country's gross domestic product (GDP) contracted by 7.5 per cent in the July-September quarter following a successive decline of 23.9 per cent in the April-June quarter, according to the estimates released by the Ministry of Statistics and Programme Implementation on November 27. With the latest GDP figures, India has entered into a technical recession for the first time since independence in 1947. When the GDP growth rate is negative for two successive quarters, it is termed as recession. On the economic data, India's Chief Economist Advisor (CEA) Krishnamurthy Subramanian said that a V-shaped recovery in growth could be seen across sectors with the capital and infrastructure sectors especially encouraging. (Also Read: With GDP Slump Of 7.5%, India Now Among Worst Performing Major Economies )
Due to the COVID-19 induced lockdown, the GDP contracted by 23.9 per cent in the first quarter of this financial year. The contraction was attributed to several reasons such as many sectors showing a high unemployment rate, decreased consumer demand, and loss in sales amid strict pandemic norms of social distancing.
Here are some of the key highlights from India's Q2 GDP data:
- According to the data by the Ministry of Statistics and Programme Implementation, the agriculture sector growth was reported to be 3.4 percent, while electricity was another sector which registered a growth of 4.4 per cent in the Q2 of this financial year.
- The country's eight core industries growth stood at -2.5 percent in the month of October, as to -0.8 pecent in September 2020.
- The growth between April-October in the eight-core sector was -13 percent as compared to 0.3 percent on a yearly basis. The industry's growth for September was revised to -0.1 per cent against -0.8 per cent earlier on a yearly basis.
- Chief Economist Advisor Krishmurthy Subramaniam said that the V-shaped recovery is seen across sectors. "There is a V-shaped growth pattern in all major sectors today. Consumer durables, capital and infrastructure look very encouraging. Food Inflation is expected to soften in Q3," he said.
- Consumer spending fell 11.3 per cent year-on-year in July-September quarter as compared to a revised 26.7 per cent fall in the previous quarter. Capital investments dropped by 7.3 per cent compared to a 47.1 per cent fall in Q1.
- Total Foreign Direct Investments (FDI) inflows in the country during the second quarter of financial year have been $28,102 million, out of which FDI equity inflows were $23,441 million or Rs. 174,793 crore.
- The FDI equity inflows during this financial year upto September to $30,004 million which is 15 per cent more than the corresponding period previous year. In rupee terms, the FDI Equity inflows of Rs 224,613 crore are 23 per cent more than the last year.