India’s GDP grows by 0.4% in October to December quarter of FY2020-21

India’s GDP (Gross Domestic Product) grew by 0.4% in the third quarter (Q3) of the current financial year (FY20-21), government data released on Friday showed, PTI reported. The National Statistical Office (NSO) has released the data for Q3 (October to December). 

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This came after India’s economy registered a sharp contraction in the previous two quarters. According to government estimates, India’s economy will contract by 8% in FY2020-21.

In the first quarter (Q1), which spans from April to June, India registered a contraction in the GDP by a whopping 23.9%. A large section of the economic activity came to an abrupt halt after a nationwide lockdown was imposed in March to stop the spread of the novel coronavirus. 

Although the coronavirus-induced lockdown was lifted from May onwards and economic activity resumed, India’s GDP contracted by 7.5% in the second quarter (Q2), which lasts from July to September. 

With contraction being registered in two successive quarters, India entered into a technical recession, for the first time since 1996.