‘Impact of COVID-19 pandemic’: Chief Economic Adviser on India’s second-quarter GDP

India’s economy contracted 7.5% in the second quarter, between July and September, after a record slump in the first quarter. This meant that India performed the poorest among major advanced and emerging economies and entering a technical recession for the first time since independence, official data showed on Friday.

Commenting on the current economic condition, Chief Economic Adviser K V Subramanian said: “Current economic condition reflecting impact of COVID-19 pandemic”.

Although the figures were an improvement on the record 23.9% contraction recorded last quarter, they indicate that Asia’s third-largest economy is in for a tough fight as it attempts to revive demand and create jobs.

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The two successive quarters of contraction mean that the country has now entered a “technical recession” for the first time since 1947.

New Delhi has struggled to kick-start an economy that is expected to shrink 9.5% this year, according to estimates released by India’s central bank governor Shaktikanta Das last month.

The International Monetary Fund has meanwhile predicted that India’s economy would contract by 10.3% this year, the biggest slump for any major emerging economy and the worst since independence.