GDP Contracts by 7.5% in July-September, Is India in Technical Recession?

New Delhi: The data released by the National Statistical Office on Friday stated that India’s Gross Domestic Product (GDP) contracted 7.5% in the July-September period in comparison to the same period last year. The development comes after the Reserve Bank of India (RBI) had earlier estimated that the economy will contract by 9.5% for the full fiscal year. Also Read – GDP Contraction to Improve to ‘Higher Single Digits’ in July-Sept: Expert

“The GDP at constant (2011-12) prices in Q2 of 2020-21 is estimated at Rs 33.14 lakh crores, as against Rs 35.84 lakh crores in Q2 of 2019-20, showing a contraction of 7.5% as compared to 4.4% growth in Q2 of 2019-20,” the Ministry of Statistics and Programme Implementation said. Also Read – US GDP Grows 33.1 Per Cent in Third Quarter of 2020

“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. Also Read – Economy Steadily Reviving, But GDP Growth Will be Negative This Fiscal, Says Sitharaman Amid Pandemic

In the last April-June quarter, the GDP had contracted by 23.9 per cent on the back of a strict coronavirus lockdown.

Prior to this, the RBI had said that India is in a technical recession. The RBI had also expected a contraction in the second quarter of the fiscal.