Indian economy witnessing recovery: Finance Ministry

The decline in the GDP narrowed to 7.5 per cent in the second quarter of this financial year, over 23.9 per cent in April-June quarter

New Delhi: The Indian economy is witnessing a V-shaped recovery as the Gross Domestic Product (GDP) has recorded a quarter-on-quarter growth of 23 per cent in the July-September quarter of this fiscal, according to the Finance Ministry’s latest Monthly Economic Review.

The decline in the GDP narrowed to 7.5 per cent in the second quarter of this financial year, over 23.9 per cent in April-June quarter. “The year-on-year GDP contraction of 7.5 per cent in Q2 of 2020-21 underlies a quarter-on-quarter surge in GDP growth of 23 per cent.

“This V-shaped recovery, evident at the half-way stage of 2020-21, reflects the resilience and robustness of the Indian economy. The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery,” the Monthly Economic Review for November said.

The growth drivers have obtained the largest support from agriculture followed by construction and manufacturing, it said, adding, the contact-sensitive services sector has also contributed although mainly through logistics and communication.