Indian economy sees improvement in July - Sept 2020 quarter; Contraction in GDP narrows to 7.5%

India's GDP at the constant price in Q2FY21 is estimated at Rs33.14 lakh cr against Rs35.84 lakh cr compared to the same period of last year.

Nov 27, 2020 01:11 IST India Infoline News Service

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The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation on Friday released the estimates of Gross Domestic Product (GDP) for the quarter ended between July - September 2020 (Q2FY21), under which the country's economy has shown signs of improvement amid easing of Covid-19 lockdown.

India's GDP at the constant price in Q2FY21 is estimated at Rs33.14 lakh cr against Rs35.84 lakh cr compared to the same period of last year. In percentage terms, GDP stood at a contraction of 7.5% in Q2FY21 against the growth of 4.4% in Q2FY20. In the June 2020 quarter, the GDP contracted to 23.4%.

In Q2FY21, quarterly GVA contracted to 7% to Rs30.49 lakh cr against Rs32.78 lakh cr a year ago same period.

On segment-wise performance under GVA at a basic price - agriculture, forestry and fishing saw a growth of 3.4% in Q2FY21 subdued compared to a year ago same period. While GVA in the construction segment turned into the growth of 4.4% in Q2FY21 from a contraction of 7% in Q1FY21.

Also, GVA in the manufacturing segment recorded a marginal growth of 0.6% in Q2FY21 from a contraction of 39.3% of Q1FY21.

Improvement was also seen in other sectors.

According to the ministry data, GDP at current price in Q2FY21 was at Rs47.22 lakh cr showing a contraction of 4% compared to Rs49.21 lakh cr (growth of 5.9%) in Q2FY20. Meanwhile, GVA at basic price at the current price stood at Rs42.80cr in Q2FY21 against Rs44.66 lakh cr last year same period, representing a contraction of 4.2%.

The ministry's data said, GDP at Constant (2011-12) Prices for H1 (April-September) 2020-21 is estimated at     Rs60.04 lakh cr as against Rs71.20 lakh cr during the corresponding period of the previous year, showing a contraction of 15.7% in H1 2020-21 as against a growth of 4.85% during the same period last year.

It needs to be noted that the second-quarter estimates are based on First Advance Estimates of agricultural production during Kharif season of 2020-21 obtained from the Department of Agriculture, Cooperation & Farmers’ Welfare, estimates of production of major livestock products viz, Milk, Egg, Meat and Wool for Livestock Sector obtained from the Department of Animal Husbandry & Dairying and Fish production data from the Department of Fisheries.

"With a view to containing the spread of the Covid-19 pandemic, restrictions were imposed on the economic activities not deemed essential during Q1. Though the restrictions have been gradually lifted, there has been an impact on economic activities. In these circumstances, some other data sources such as GST, interactions with professional bodies etc." said the ministry. 

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