The country's economy contracted by 7.5% in the July quarter

New delhi date. 27 November 2020, Friday

Today is the second time in the Corona era that GDP growth figures have come up. Amid the Koro crisis, the country's economy contracted by 7.5% in July-September, the second quarter of the current fiscal year 2020-21.

According to figures released by the Department of Statistics, this led to a 4.4% increase in GDP in the first quarter of the fiscal year 2019-20. At the same time, production of 8 major infrastructure industries declined by 2.5% year-on-year in October.

The economy contracted sharply by 23.9% in the April-June quarter of the first fiscal year due to the Koro epidemic and the lockdown to prevent it. China's economic growth was 4.9% in the July-September quarter and 3.2% in the April-June quarter.

According to the accepted definition of economist, if a country's GDP remains negative for two consecutive quarters, it is considered a state of recession. In this sense, if India's GDP was actually negative in the second quarter, it can be said that the country is in recession.

As for the core sector, it grew by 2.5% in October. Which is lower than the 0.8% in September. Coal, crude oil, steel, petro, refining, electricity and natural gas industries are considered the foundation of any economy. These sectors are called core sectors.

Financial agencies at home and abroad, including the Reserve Bank of India, had forecast negative growth in the economy in the September quarter due to the impact of the Corona virus. GDP growth was 3.1% in the March quarter. Due to this, the GDP growth during the financial year 2019-20 was only 4.2%.