India’s GDP has recorded a decline of seven and a half percent this quarter. The Government of India has released the GDP data for the quarter of July to October. With this, it was confirmed that India is in the grip of economic recession. According to economics, instead of increasing GDP for two consecutive quarters, it seems to be decreasing only when a country is in the grip of recession.
After the economic crisis arising out of Corona, it was believed that in this quarter too, the news of GDP would fall instead of falling. Earlier, between April and June, there was a steep decline of 23.9 percent in India’s GDP. Of course, it was expected that there would be some improvement since the lockdown opened in July, but there was hardly any hope that this time there could be an increase in GDP.
The latest report by SBI and CRISIL, the country’s two leading economic research agencies, said that agriculture sector will play the biggest role in handling the economy in the second quarter as well. In its research report, SBI had expected the economy to fall to around 10.7 per cent in the second quarter.
3.4 percent growth in agriculture
According to the Ministry of Statistics and Program Implementation, the gross asset value (GVA) for the second quarter of FY 2021 has been -7 per cent. It was estimated to be -8.6 percent. At the same time, the growth rate of agriculture sector has been 3.4 percent. It was estimated to be 3.9 percent.