The Indian economy has officially entered a technical recession, with two consecutive quarters of negative growth in gross domestic product (GDP).
Real GDP for the September quarter contracted 7.5 per cent year-on-year, on the back of the steep contraction in manufacturing, construction, and services, data released by the National Statistical Office showed on November 27.
The pace of contraction was slower than analyst estimates. Analysts polled by news agencies Reuters and Bloomberg had expected a contraction of 8.8 per cent and 8.2 per cent, respectively, for the second quarter.
However, the data also showed that the country has begun its gradual recovery following the nationwide lockdown in April, May, and June which had flatlined the economy.
The real GDP for April-June 2020 had contracted 23.9 per cent, the steepest fall ever (and the first contraction in 40 years). The July-September 2019 quarter had witnessed a GDP growth of 4.4 per cent.
This means that sequentially, India’s GDP grew by 23 per cent in the July-September quarter.
Meanwhile, let's have a look at India's position in comparison to other countries based on data provided by Trading Economics:
As per the data, only China seemed to have a positive growth rate with 4.9 in the July-September quarter of FY2021. Other than that only Saudi Arabia saw a positive growth of 1.2 percent.
Economic superpowers like the US, France, Germany, the UK, Japan, and Russia are trailing in negative numbers.
The GDP of US
stands at (-)2.9 percent, while for France
its (-)3.9 percent. Despite making a recovery, UK
saw a contraction of (-)9.6 and (-)4 percent respectively. For Russia
, the GDP contracted by 3.6 and 5.8 percent, respectively.