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BIG STORY NOVEMBER 27, 2020 | The Indian Eye 4

indian ecOnOmy

How Bad is it?

with the contraction of 7.5 per cent in the second quarter, the indian economy

has hit recession. But the government claims a V-shaped recovery.

what is the actual scenario of asia’s third biggest economy?

Our Bureau

New Delhi

he Indian economy con-
tracted by 7.5 per cent
Tin the July to September
quarter (Q2 FY21), govern-
ment data showed here on Fri-
day. Though this is a rebound
from the earlier quarter but
with this contraction Indian
economy has hit technical re-
cession for the first time.
According to the Ministry
of Statistics and Programme
Implementation, gross value
added (GVA) came in at minus
7 per cent. The economy had
contracted by 23.9 per cent in
the April to June quarter (Q1
FY21), marking the first con-
traction in more than 40 years
as COVID-19 pandemic com-
pressed consumer demand and
private investments. shopping during the festival season has given a little boost to indian economy (ANi)
“GDP at Constant (2011-
12) Prices in Q2 of 2020-21 contraction of 7 per cent,” it utility services have shown a -10.7 per cent from -12.5 per
is estimated at Rs 33.14 lakh added. growth of 4.4 per cent; agricul- cent with a positive bias, in a re-
crore, as against Rs 35.84 lakh The statement said during ture, forestry and fishing sector search report from SBI Ecow-
crore in Q2 of 2019-20, show- the quarter trade, hotels, trans- at 3.4 per cent and manufactur- rap on Friday.
ing a contraction of 7.5 per cent port and communication saw ing sector showed a marginal The report titled, “Posi-
as compared to 4.4 per cent a dip of -15.6 per cent while growth of 0.6 per cent. tive events improve India’s Q2
growth in Q2 2019-20,” said public administration, defense The economy was already GDP projections: Losses re-
the Ministry of Statistics and and other services by -12.2 per slowing before the pandem- duced but reasons to remain
Programme Implementation in cent. The financial, real estate ic struck, growing only 4.2 per cautious remain,” was authored
a statement. and professional services sector cent in the last fiscal year, its by Dr Soumya Kanti Ghosh,
“Quarterly GVA at Basic contracted by 8.1 per cent and slowest pace in 11 years. SBI’s Chief Economic Adviser.
Prices at Constant (2011-12) construction by 8.6 per cent. Now, citing continuous revi- According to it, the upward re-
Prices for Q2 of 2020-21 is es- Some sectors have bounced sions in India’s GDP estimates visions reflected faster recovery
timated at Rs 30.49 lakh crore, back with resumption of eco- as the current norm, State Bank and the estimates could be bet-
as against Rs 32.78 lakh crore nomic activities. The electrici- of India (SBI) revised their
in Q2 of 2019-20, showing a ty, gas, water supply and other second-quarter (Q2) GDP to Continued at next page... >>

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