India now in technical recession: Check how sectors fared in Q2 as compared to Q1

According to the Ministry of Statistics & Programme Implementation, agriculture, forestry and fishing, manufacturing, and electricity, gas, water supply and other utility services witnessed positive growth between July-September.

The estimates of Gross Domestic Product (GDP) for the second quarter of this fiscal, released by the National Statistical Office (NSO), showed significant improvement as against the first when the Indian economy shrank by a record 23.9%.

The manufacturing sector recorded a positive growth of 0.6%. (AFP)

It still registered a contraction of 7.5% over the corresponding quarter of the last year, owing to the restrictions on the economic activities to combat the coronavirus pandemic.

However, official data also showed that the two successive quarters of contraction mean India has now entered a “technical recession” for the first time since 1947.

According to the ministry of statistics and programme implementation, agriculture, forestry and fishing, manufacturing, and electricity, gas, water supply and other utility services witnessed positive growth between July and September. The ministry said t

Q1(2020-21) vs Q2 (2020-21)

Manufacturing

During the second quarter, most of the indicators across sectors showed improvement as compared to the preceding one. The manufacturing sector was hugely impacted by coronavirus-induced lockdown in the first quarter, registering a contraction of 39.3% in the April-June period. In the second quarter, the sector recorded a positive growth of 0.6%.

Construction

In the first quarter, the construction sector was the worst-hit as it bore the brunt of nationwide lockdown and contracted 50.3%. The sector recovered in the second quarter but remained in contraction, registering 8.6% negative growth.

Travel, Hotels, Transport

The tourism sector nosedived in the first quarter which reflected in the GVA at Basic Prices, and the sector encompassing travel, hotels, transport, and communications & services related to broadcasting recorded negative growth of 47.0%. While the sector recovered in Q2, it witnessed a contraction of -.8.6%.

Agriculture, Forestry, and Fishing

It has remained the only sector which has displayed consistent growth. The agriculture sector grew by 3.4% in Q2, mirroring its Q1 growth. The positive growth rate across the two quarters is a result of the fact that they are essential to life and faced limited restriction as compared to other sectors during the lockdown.

Electricity, Gas, Water Supply & Other Utility Services

The industry witnessed significant improvement in the second quarter, showing a positive growth of 4.4%, the best-performing sector in the July-September period. In Q1, the sector contracted 7.0% but registered an impressive recovery in Q2.