India exits recession as GDP expands 0.4% in Q3, GDP returns to growth
According to data released by the National Statistical Office (NSO) on February 26, India’s Gross Domestic Product (GDP) grew at 0.4% in the quarter ending in December 2020.
Due to the Covid-19 pandemic, India was into a contraction zone in the first half of the current fiscal year as the whole country was under lockdown. The country came out of the contraction zone in the second half as the lockdown restrictions were eased significantly and saw a revival as economic activities resumed resulting in the expansion of 0.4% in Q3.
As per records, the economy suffered an annual contraction of 24.4% and 7.3% in the quarters ending June 2020 and September 2020. The economy is already back to pre-pandemic levels based upon the Nomura India Business Resumption Index (NIBRI). GST collected for the month of January came in at Rs. 1.2 lakh crore showing a positive recovery.
The manufacturing sector recorded 1.6% growth, while construction was up 6.2% during the December quarter. Trade, hotels, communication and transport services contracted the most at 7.7%. The mining sector contracted 5.9% and agriculture was up 3.9%.