Updated: February 26, 2021 10:16:40 pm
India GDP Q3 Data: After two consecutive quarters of contraction, India’s Gross Domestic Product (GDP) for the October-December quarter (Q3) grew by 0.4 per cent, while the GDP for the entire financial year 2020-21 (FY21) is seen contracting (-)8 per cent, as per the second advanced and quarterly estimates of GDP released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
The government also revised its GDP estimates in the previous two quarters. According to the latest data, the GDP contracted by 7.3 per cent in July-September quarter (Q2) instead of the previous estimate of -7.5 per cent and by a sharp 24.4 per cent in April-June quarter (Q1) instead of the earlier reported -23.9 per cent. The Q1 contraction is the worst in the history of the Indian economy, which happened due to a strict nationwide lockdown because of the coronavirus (COVID-19) pandemic.
In its first advanced estimate released last month, the government had estimated the GDP in FY21 to contract by 7.7 per cent.
The GDP had expanded by 4.0 per cent in 2019-20. The FY21 GVA at Basic Prices is estimated at -6.5 per cent, according to the MoSPI data.
In the third quarter, the manufacturing sector, which had a contraction of 1.5 per cent in Q2, rose by 1.6 per cent. Apart from this, the agriculture, forestry and fishing sector grew 3.9 per cent in Q3. Agriculture has been the only sector to register a growth in all the three quarters.
Among the other industries, contraction was seen in trade, hotels, transport, communication and services related to broadcasting at 7.7 per cent in Q3, better from a contraction of 15.3 per cent in Q2. The construction sector showed a growth of 6.2 per cent, much better from a contraction of 7.2 per cent in Q2.
GDP in positive trajectory a promising sign: India Inc
Expressing confidence, India Inc on Friday said the recouping of the country’s economy to a positive trajectory in the third quarter is a promising sign as it portends the end of the pandemic-induced recessionary phase seen in the first-half of the fiscal year.
Industry bodies said that the GDP will improve further in the coming months on the back of positive growth stimuli emanating from the Union Budget and initiatives like the Production Linked Incentive scheme unveiled by the government.
People hit by ‘double whammy’ of low growth, high inflation: Congress
Attacking the government over the latest GDP numbers, Congress on Friday said the people have been hit by the double whammy of low growth and high inflation for which the Modi government’s “gross mismanagement” is responsible.
Congress’ chief spokesperson Randeep Surjewala said the third-quarter GDP data proves yet again that fault lines in the Indian economy are more visible than ever before.
The economy has grown by a mere 0.4 per cent in the third quarter of the financial year 2020-21, which is far below estimation, he said.
“What continues to be an area of concern, however, is the advance estimates for the entire financial year. Central Statistics Office (CSO) has lowered the GDP growth rate for FY2020-21 from its previous estimated minus 7.7% to now minus 8%,” Surjewala was quoted saying by PTI.
(With PTI inputs)
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