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Data | India’ GDP contracts for the second consecutive quarter

In the second quarter, India was among the most worse-off economies for which data were available

With two successive quarters of negative growth, India has now entered a technical recession. After the massive contraction in the first quarter, the economy recovered a little in the second quarter due to pent-up demand following relaxation of lockdown rules and increased spending during the festive season. However, despite the multiple relief packages announced to tackle COVID-19, government expenditure shrunk in the second quarter.

Contracting at a slower pace

In the July-September (Q2FY2021) quarter, India’s GDP contracted for the second time since 1996, the year when the country started recording such data. After contracting by 23.9% year-on-year in Q1FY21, the economy shrunk at a slower pace of 7.5% in Q2FY21.

 

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Not out of the woods

Most sectors recorded a significant turnaround from the record levels of slump witnessed in the previous quarter, with the economy opening up. The recovery was substantial in the manufacturing, construction, trade, hotels, and transport sectors. However, contraction quickened in the financial, real estate, public administration, and defence sectors.

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</p> </div> </div> <p><strong>Also read: <a href="https://www.thehindu.com/opinion/editorial/historic-recession-the-hindu-editorial-on-indias-gdp-slump/article33207269.ece">Historic recession: On India’s GDP slump</a></strong></p> <h2>Government spent less</h2> <p>Growth in government spending (Govt. Final Consumption Expenditure, GFCE) decelerated to -22.1% in Q2. Both Private Final Consumption Expenditure (PFCE), which reflects consumption, and Gross Fixed Capital Formation (GFCF), which reflects investments, continued to contract but at a slower pace than Q1.</p> <p> </p> <h2>Among the worst</h2> <p>The Q1 contraction of 23.9% was the worst among many key economies. In Q2, while India is no more the worst-performing economy, it is still among the most worse-off economies for which data were available.</p> <p><strong>Also read: <a href="https://www.thehindu.com/business/Economy/the-hindu-explains-what-is-technical-recession-and-what-does-it-mean-for-the-indian-economy/article33100607.ece">The Hindu Explains | What is technical recession, and what does it mean for the Indian economy?</a></strong></p> </div> <p><a href="https://www.thehindu.com/data/data-india-gdp-contracts-for-the-second-consecutive-quarter/article33215269.ece">Source: thehindu.com</a></p> <div id='jp-relatedposts' class='jp-relatedposts' > <h3 class="jp-relatedposts-headline"><em>Related</em></h3> </div> </div><!-- .entry-content --> <footer class="entry-footer"> <span class="tags-links">Tagged <a href="https://www.tricksnews.in/tag/national/" rel="tag">National</a></span> </footer><!-- .entry-footer --> </article><!-- #post-## --> <div class="newspaper-lite-author-wrapper clearfix"> <div class="author-avatar"> <a class="author-image" href="https://www.tricksnews.in/author/newsdesk/"><img alt='' src='https://secure.gravatar.com/avatar/fac3cfb98b5adb94ca2610d03e8466fa?s=132&d=mm&r=g' srcset='https://secure.gravatar.com/avatar/fac3cfb98b5adb94ca2610d03e8466fa?s=264&d=mm&r=g 2x' class='avatar avatar-132 photo' height='132' width='132' /></a> </div><!-- .author-avatar --> <div class="author-desc-wrapper"> <a class="author-title" href="https://www.tricksnews.in/author/newsdesk/">NewsDesk</a> <div class="author-description"></div> <a href="" target="_blank"></a> </div><!-- .author-desc-wrapper--> </div><!--newspaper-lite-author-wrapper--> <div class="related-articles-wrapper"> <div class="widget-title-wrapper"> <h2 class="related-title">Related Articles</h2> </div> <div class="related-posts-wrapper clearfix"> <div class="single-post-wrap"> <div class="post-thumb-wrapper"> <a href="https://www.tricksnews.in/national/covid-19-takes-sheen-off-assams-silk-in-bihu-season/" title="COVID-19 takes sheen off Assam’s silk in Bihu season"> <figure><img width="300" height="290" src="https://i1.wp.com/www.tricksnews.in/wp-content/uploads/2020/03/covid-19-takes-sheen-off-assams-silk-in-bihu-season.jpg?resize=300%2C290&ssl=1" class="attachment-newspaper-lite-block-medium size-newspaper-lite-block-medium wp-post-image" alt="" /></figure> </a> </div><!-- .post-thumb-wrapper --> <div class="related-content-wrapper"> <div class="post-cat-list"> <span class="category-button mgs-cat-7"><a href="https://www.tricksnews.in/category/national/">National</a></span> </div> <h3 class="post-title"><a href="https://www.tricksnews.in/national/covid-19-takes-sheen-off-assams-silk-in-bihu-season/">COVID-19 takes sheen off Assam’s silk in Bihu season</a> </h3> <div class="post-meta-wrapper"> <span class="posted-on"><span class="screen-reader-text">Posted on</span> <a href="https://www.tricksnews.in/national/covid-19-takes-sheen-off-assams-silk-in-bihu-season/" rel="bookmark"><time class="entry-date published updated" datetime="2020-03-23T21:27:15+00:00">March 23, 2020</time></a></span><span class="byline"> <span class="screen-reader-text">Author</span> <span class="author vcard"><a class="url fn n" href="https://www.tricksnews.in/author/newsdesk/">NewsDesk</a></span></span> </div> <p>The COVID-19 pandemic has taken the sheen off Assam’s silk industry ahead of the mid-April Rongali or Bohag Bihu, the festival that fuels much of its sales. 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Cabinet clears proposal for three capitals, and more</a></h3> <div class="post-meta-wrapper"> <span class="posted-on"><span class="screen-reader-text">Posted on</span> <a href="https://www.tricksnews.in/international/top-news-of-the-day-j-p-nadda-elected-unopposed-as-bjp-president-a-p-cabinet-clears-proposal-for-three-capitals-and-more/" rel="bookmark"><time class="entry-date published updated" datetime="2020-01-20T13:45:37+00:00">January 20, 2020</time></a></span><span class="byline"> <span class="screen-reader-text">Author</span> <span class="author vcard"><a class="url fn n" href="https://www.tricksnews.in/author/newsdesk/">NewsDesk</a></span></span> </div><!-- .post-meta-wrapper --> </div> </div><!-- .single-post-wrapper --> </div><!-- .posts-list-wrapper --> </div><!-- .widget-block-wrapper --> </section> </div> <div class="mgs-fourth-footer-widget mgs-footer-widget"> </div> </div><!-- .mgs-footer-widget-wrapper --> </div><!-- .footer-widgets-area --> </div><!-- .nt-container --> </div><!-- #top-footer --> <div id="bottom-footer" class="sub-footer-wrapper clearfix"> <div class="mgs-container"> <div class="site-info"> <span class="copy-info">2018 newspaper-lite</span> <span class="sep"> | </span> Newspaper Lite by <a href="http://themecentury.com/" >themecentury</a>. </div><!-- .site-info --> <nav id="footer-navigation" class="sub-footer-navigation" > </nav> </div> </div><!-- .sub-footer-wrapper --> </footer><!-- #colophon --> <div id="mgs-scrollup" class="animated arrow-hide"><i class="fa fa-chevron-up"></i></div> </div><!-- #page --> <div style="display:none"> <div class="grofile-hash-map-fac3cfb98b5adb94ca2610d03e8466fa"> </div> </div> <script type='text/javascript' src='https://c0.wp.com/p/jetpack/7.6.1/_inc/build/photon/photon.min.js'></script> <script type='text/javascript'> /* <![CDATA[ */ var wpcf7 = {"apiSettings":{"root":"https:\/\/www.tricksnews.in\/wp-json\/contact-form-7\/v1","namespace":"contact-form-7\/v1"}}; /* ]]> */ </script> <script type='text/javascript' src='https://www.tricksnews.in/wp-content/plugins/contact-form-7/includes/js/scripts.js?ver=5.1.6'></script> <script type='text/javascript' src='https://s0.wp.com/wp-content/js/devicepx-jetpack.js?ver=202109'></script> <script type='text/javascript' src='https://secure.gravatar.com/js/gprofiles.js?ver=2021Maraa'></script> <script type='text/javascript'> /* <![CDATA[ */ var WPGroHo = {"my_hash":""}; /* ]]> */ </script> <script type='text/javascript' src='https://c0.wp.com/p/jetpack/7.6.1/modules/wpgroho.js'></script> <script type='text/javascript' src='https://www.tricksnews.in/wp-content/themes/newspaper-lite/assets/lib/bxslider/jquery.bxslider.min.js?ver=4.2.12'></script> <script type='text/javascript' src='https://www.tricksnews.in/wp-content/themes/newspaper-lite/assets/lib/sticky/jquery.sticky.js?ver=20150416'></script> <script type='text/javascript' src='https://www.tricksnews.in/wp-content/themes/newspaper-lite/assets/lib/sticky/sticky-setting.js?ver=20150309'></script> <script type='text/javascript' src='https://www.tricksnews.in/wp-content/themes/newspaper-lite/assets/js/custom-script.js?ver=1.0.5'></script> <script type='text/javascript' src='https://c0.wp.com/c/5.1.8/wp-includes/js/comment-reply.min.js'></script> <script type='text/javascript' src='https://c0.wp.com/c/5.1.8/wp-includes/js/wp-embed.min.js'></script> <script type='text/javascript' src='https://stats.wp.com/e-202109.js' async='async' defer='defer'></script> <script type='text/javascript'> _stq = window._stq || []; _stq.push([ 'view', {v:'ext',j:'1:7.6.1',blog:'159132683',post:'65699',tz:'0',srv:'www.tricksnews.in'} ]); _stq.push([ 'clickTrackerInit', '159132683', '65699' ]); </script> </body> </html>