India’s GDP has finally come out of the phase of recession after two consecutive quarters of de-growth. The gross domestic product (GDP) growth expanded by 0.4 per cent in the three months ended December 2020. This GDP rate has been reported against a contraction of 7.3 per cent in the September quarter.
With this GDP rate, India has become one of the few economies to witness growth in the last quarter of 2020. For the full year, GDP is estimated to contract by 8 per cent in the financial year, the National Statistical Office (NSO) said in a press release.
The NSO revised GDP prints for June and September quarters to -24.4% and 7.3% respectively from earlier estimates of -23.9% and -7.5%. For FY21, NSO expects the GDP to contract 8% compared to an earlier projection of a decline of 7.7%, signalling weaker than expected rebound in the March quarter.
India’s GDP records a growth of 0.7%
As of now, rating agency Moody’s has forecast a 13.7% economic growth for FY22. However, in its Monetary Policy Review presented on February 5, the Reserve Bank of India has projected a GDP growth of 10.5 per cent in financial year 2021-22. The International Monetary Fund expects India to grow at 11.5 per cent in the same period.