GDP contracts by minus 7.5% in Q2 after contraction of minus 23.9% in Q1

The GDP growth numbers naturally went down, given the disruption due to the pandemic. However, GDP for second quarter of Financial Year 2020 contracted by minus 7.5 per cent, much smaller when compared to the contraction of minus 23.9 percent reported for first quarter of Financial Year 2020.

 

Between these two quarters, already a huge improvement can be seen in private consumption expenditure. Agriculture reported a growth of 3.4 per cent in second quarter, the same as in first quarter. Manufacturing has grown by 0.6 per cent in second quarter as compared to a contraction of minus 39.3 per cent in first quarter. A comparison with other economies globally shows that India’s position is better.