India’s GDP growth rate, Q3FY21: The Indian economy has recovered from two consecutive quarters of decline. In the third quarter (October-December 2020) of the current financial year 2020-21, the country’s GDP growth rate was recorded at 0.4 percent. The government has predicted that India’s GDP may fall by 8 percent in the financial year 2020-21. Data from the third quarter of GDP shows that the economy is on the path of recovery. It is believed that the recent economic reforms and budget announcements will have a major impact on the economy, the Indian economy will return to the path of double-digit growth.
There was a steep decline in GDP growth in the last two quarters due to the COVID-19 epidemic and lockdown. The decline was 23.9 percent in the first quarter and 7.5 percent in the second quarter.
GDP growth in previous quarters
Q2FY21: (-)7.5%
Q1FY21: (-)23-9%
Q4FY20: 3.1%
Q2FY20: 4.5%
Q3FY20: 4.7%
Q1FY20: 5%
(Source: CSO)
Estimates of GDP coming into positive zone
Agencies and experts had predicted a GDP-positive zone in the third quarter. DBS Bank said that GDP growth in the third quarter could be 1.3 per cent. Radhika Rao, research economist at DBS Group, estimated that a rapid improvement in the status of COVID-19 in the country and rapid increase in people’s spending have been two factors that would prove to be better for the December 2020 quarter. On the other hand, according to a survey by Bloomberg, it was estimated to be 0.5 percent.