After contracting for two straight quarters, Indian economy witnessed a marginal growth of in the October-December quarter. India’s gross domestic product (GDP) grew 0.4% year-on-year, official data released by the National Statistics Office showed on Friday.
India had slipped into a technical recession during July-September when GDP fell for two successive quarters. In the July-September quarter, India’s GDP contracted 7.5% year-on-year. The economy shrank 23.9% year-on-year in the April-June quarter in the wake of coronavirus outbreak and nationwide lockdown to prevent the virus.
Gross value added (GVA) grew 1% year-on-year in the quarter under review.
Reserve Bank of India earlier indicated that the Indian economy has further recovered and estimates the GDP to turn positive in the third quarter.
India’s GDP is expected to return to expansion territory in October-December quarter, growing by 0.8 per cent year-on-year (YoY), multinational bank Barclays had said earlier.