Two consecutive quarters of negative growth came to an end after the Indian GDP rose by 0.4% in the three months ended December 2020.
The GDP had contracted 7.3% in the September quarter. The GDP is estimated to have contracted by 8% in the financial year, a release from the National Statistical Office (NSO) said.
Though the growth is minuscule, India is among the few major economies to see growth in the last quarter of 2020.
Thanks to the COVID pandemic and the resultant lockdown, the gross domestic product had contracted by a massive 23.9% in the June quarter and by 7.5% during the September quarter, the latter being termed as a technical recession due to a fall in gross domestic product in two successive quarters.
GDP how will it be in coming fiscal?
Government data showed that output in eight core infrastructure sectors grew 0.1%in January 2021 compared to last year. The eight core sectors including coal, crude oil, and electricity saw a decline of 8.8% during April-January 2020-2021.
The Reserve Bank Of India has projected a 10.5% GDP growth for the country in the financial year 2021-22.
Analysts are pegging a growth for the economy in the current and next fiscal which they say will come on the back of a rise in government spending, increasing consumer demand, and economic activities resuming in full swing.
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