According to official data released by the Office for National Statistics on Friday, the Indian economy saw marginal growth of 0.4% per annum in the October-December quarter, after two straight-quarter contracts. India’s gross domestic product (GDP) returned to the expanded region in the third quarter, behind a low number of coronavirus cases and encouraged by high-frequency economic data.
In July-September, GDP fell for two consecutive quarters and India fell into a technological recession. In the July-September quarter, India’s GDP contracted 7.5% year-on-year. The economy shrank by 23.9% year-on-year in the April-June quarter on the back of coronavirus outbreaks and nationwide lockdowns to prevent the virus.
The Reserve Bank of India had earlier indicated that the Indian economy had recovered further and predicted that GDP would turn positive in the third quarter.
The multinational bank Barclays had earlier said that India’s GDP was expected to return to the expanded region in the October-December quarter, growing 0.6 per cent year-on-year (YOY).