NEW DELHI: India’s economy expanded by a weaker-than-expected 0.4 percent in the October-December quarter, which still allowed it to escape recession following large contractions in the two previous quarters during the coronavirus pandemic, the government said Friday.
The National Statistical Office projected an 8 percent contraction for the 2020-21 financial year, which ends in March. In January, it had projected a contraction of 7.7 percent for the fiscal year, following 4 percent growth in 2019-20.
It said fertilizer production rose by 2.7 percent in January, steel by 2.6 percent and electricity generation by 5.1 percent. Coal production declined by 1.8 percent, crude oil by 4.8 percent and natural gas by 2 percent, it said in a statement.
India’s economy contracted by 7.5 percent in the July-September quarter following a record plunge of 23.9 percent in the previous three months. The government had imposed a strict two-month lockdown across the country in March after the outbreak of the pandemic.
HIGHLIGHTS
● India’s economy contracted by 7.5 percent in the July-September quarter following a record plunge of 23.9 percent in the previous three months.
● The government had imposed a strict two-month lockdown across the country in March after the outbreak of the pandemic.
A country enters a technical recession if its economy contracts in two successive quarters. India’s recovery is expected to improve with a rise in consumer demand and investment.
India’s central bank, the Reserve Bank of India, is projecting the gross domestic product growth of 10.5 percent in financial year 2021-22. The International Monetary Fund has projected 11.5 percent growth in calendar 2021.
The IMF estimated that the Indian economy contracted 8 percent in 2020.
