According to government data released on November 27, 2020, the Indian economy declined by 7.5 percent in the second quarter (July to September) of FY 2020-21. With this contraction, India has officially recorded a technical slowdown for the first time.
This contraction is a rebound from the first quarter of FY 2020-21. India’s economy had declined by 23.9 percent in the April to June quarter (first quarter, FY 2020-21), marking the first contraction in 40 years as the Kovid-19 epidemic led to consumer demand and private investment dominating. Be influenced by
According to the Ministry of Statistics and Program Implementation, the Gross Value Added (GVA) came down by zero to 07 percent during the second quarter of FY 2020-21.
Estimates of constant GDP prices in the second quarter of FY 2020-21 were Rs 33.14 lakh crore (base year 2011-12), while in the second quarter of FY 2019-20, this estimate of GDP was Rs 35.84 lakh crore. This represents a contraction of 7.5 percent compared to 4.4 percent growth in the second quarter of FY 2019-20.
The prices of GVA consistently at base prices for the second quarter of FY 2020-21 were estimated at Rs 30.49 lakh crore (base year 2011-12) in the second quarter of FY 2020-21, while in the second quarter of 2019-20 32.78 lakh crore. It showed a contraction of 7 percent.
In addition, the real estate, financial and professional services sector saw a decline of 8.1 percent and the construction sector saw a drop of 8.6 percent.
Other sectors including agriculture, fish industry and forestry also grew by 3.4 percent and manufacturing sector saw a marginal growth of 0.6 percent.
Before the Covid Pandemic The Indian economy was already slowing down, it was only 4.2 percent in the last financial year, which is the slowest pace in the last 11 years.