India posted de-growth of 23.9 per cent and 7.5 per cent in GDP in first and second quarters ended June and Se...Read More
NEW DELHI: India's
gross domestic product
(GDP) for the third quarter (Q3) ended December 2020 stood at o.4 per cent, government data released on Friday showed.
India posted de-growth of 23.9 per cent and 7.5 per cent in GDP in first and second quarters ended June and September 2020, respectively.
With further relaxation on activities throughout the country major business and economic indicators such as GST collections, manufacturing PMI, forex reserves, railway freight, merchandise exports and passenger vehicle sales have shown positive sequential in growth in the past couple of months.
Recovery of activities have also been reinforced by some degree of rollout of Covid-19 vaccines, and growing confidence in the market that things are getting back to normal.
The recently released Economic Survey had projected
to contract 7.7 per cent in current fiscal and growth to rebound to 11 per cent next fiscal.
Economists have raised their forecasts for the current and next fiscal year, expecting a pick-up in government spending, consumer demand and resumption of most of economic activities were helping the economic recovery.
Prime Minister Narendra Modi's government earlier this month rolled out plans to fund a huge vaccination drive, while outlining a slew of tax incentives to boost manufacturing.
The Reserve Bank of India (RBI), which has slashed its repo rate by a total of 115 basis points since March 2020 to cushion the shock from the pandemic, has projected growth of 10.5% for the fiscal year starting April.
However, some analysts warn that a recent rise in crude oil prices and a surge of Covid-19 cases in parts of the country may pose risks to the nascent recovery. Moreover, some sectors, such as retail, airlines, hotels and hospitality, are still reeling from the impact of pandemic.