The Gross Domestic Product (GDP) contracted 7.5 per cent in the July-September quarter of 2020-21 in India. National Statistical Office (NSO) showed that the Indian economy has contracted in two consecutive quarters, in its latest data released for the Second Quarter (Q2).
The latest NSO data released stated that the GDP prices in Quarter- 2 Financial Year 21 have been estimated at Rs 33.14 lakh crore, as against Rs 35.84 lakh crore in Q2 of 2019-20 at Constant prices (2011-12) showing a contraction of 7.5 per cent.
India began documenting quarterly growth rates from 1996 and this is the first time since then the economy has contracted in two consecutive quarters. Economists say that the situation is called a technical recession.
Chief Economic Advisor K Subramanian stated that the COVID -19 Pandemic hit Indian Economy and the Quarter1 GDP number coming at -23.9%, though the Indian economy was doing well before the pandemic. The government has announced measures of stimulus packages of a total worth of almost 30 lakh crore or about 15 per cent of the GDP.