GDP Q2 Result: India’s economy is now officially in recession. The Indian economy has also recorded a contraction in the second quarter of the current financial year. India’s GDP recorded a contraction of 7.5 percent in the second quarter. This information has been obtained from the data released by the government on Friday. Earlier, in the first quarter of the current financial year, there was a historic decline of 23.9 percent in the gross domestic product (GDP). Know what is the common belief of human life, and what should be the main purpose of getting it.
Gross Domestic Product (GDP) Has Fallen
The gross domestic product (GDP) figures for the second quarter of the current financial year (Financial Year 20-21) have arrived and If compared to the first quarter, the economy has got a recovery but despite this, the negative growth is sealing the recession. GDP has fallen by 7.5 percent in the July-September quarter. There was an unprecedented 23.9% decline in GDP in the first quarter.
Expectations for Better Growth in Next Quarter
The pace of decline in GDP in the second quarter was expected to be close to 10 percent. In this way, the figures are much better than expected. This decline will slow down further in the current quarter and the growth rate is likely to be positive in the fourth quarter i.e. January to March 2021.
The Governor of the Reserve Bank had said during an event on 26 November that the Indian economy is coming back on track better than expected but it needs to be seen that this recovery is sustained.
The latest report by SBI and CRISIL, the country’s two leading economic research agencies, said that the 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 percent in the second quarter.
GDP Second Quarter 2020-2021 Highlights
- GDP is the total value of all goods and services produced in the country in a given year.
- The country’s GDP (Gross Domestic Product) has fallen by 7.5 percent in the July-September quarter of the financial year 2020-21.
- This information has come out from the data released on Friday by the government.
- The decline was 23.9 percent in the April-June quarter, the highest in the last 40 years.
- Chief Economic Advisor of India KV Subramaniam has said about the decline in GDP that the current economic situation is due to the impact of Covid-19.
- Must Read the book Way of Living for the upliftment of your Spiritual growth.
Reduction in GDP Is Seen Due To Coronavirus Lockdown
The major reason for the record fall in GDP in Q1 was the strict lockdown imposed across the country due to the Corona epidemic. The economic activity gained momentum after the lockdown opened. The Reserve Bank of India (RBI) estimated that GDP would fall by 8.6 percent in the second quarter of the current financial year. The RBI has said in its report that for the first time the economy has come under technical protection due to the fall in GDP for two consecutive quarters.
GDP Q2 Result: Better Than the First Quarter
The figures for India GDP Q2 Data have come for the second time on Friday (27 November) amid Coronavirus Pandemic. In the second or September quarter of FY 2020-21, GDP growth was negative at 7.5%. These figures testify to the recovery in the economy compared to the first quarter. Despite this, negative growth is not the right indicator for the economy. Negative growth in two consecutive quarters will be considered a slowdown.
GDP Q2 Result: 8.6 Percent Decline as Estimated
The GDP figures are better than the Reserve Bank estimate. The Reserve Bank had projected an 8.6 percent fall in GDP in the September quarter. Care Ratings also forecast a 9.9 percent decline in GDP in the September quarter. In this sense, the economy can be expected to improve in the third and fourth quarters.
What Does the Government Have To Say?
Chief Economic Advisor Subramanian says that our economy is getting better now than before. The economy has slowed down due to Coronavirus. This is the reason that GDP growth in the first quarter had gone negative at around 24 percent.
Major Sectors Are Influenced
Growth in eight major industry sectors of India has fallen. These eight basic industry sectors include natural gas, coal, crude oil, steel, refinery products, fertilizers, cement, and electricity.
According to the Ministry of Statistics and Program Implementation, the growth rate of the agriculture sector in the second quarter of FY 2021 has been 3.4 percent. However, it was estimated to be 3.9 percent.
GDP Q2 Result: GDP Figures by Region
According to data from the Ministry of Statistics and Program Implementation (MoSPI), the GDP growth by region in the second quarter is as follows:
- Agricultural sector: 3.4%
- Mining: -9.1%
- Manufacturing: 0.6%
- Electricity: 4.4%
- Construction: -8.6%
- Trade & Hotels: -15.6%
- Finance, Insurance and Realty: -8.1%
- Public administration, defense: -12.2%
GDP Q2 Result: Fiscal Deficit
According to the data released by the government, India’s federal fiscal deficit in the last seven months till October has been Rs 9.53 lakh crore ($ 128.9 billion), or 126.7 percent of the budgeted target for the entire fiscal year. According to the data, the net tax received was Rs 5.76 lakh crore. This is 15.7 percent less than a year ago. While the total expenditure was 16.6 lakh crore rupees
What Is GDP?
GDP is the total value of all goods and services produced in the country in a given year.
This shows how well or poorly the economy has performed throughout the year or any quarter. If GDP data shows sluggishness, it means that the country’s economy is slowing down and the country did not produce enough goods as compared to last year and the service sector is also declining.
The Central Statistics Office (CSO) in India assesses GDP four times a year. GDP is assessed every quarter. Every year it releases annual GDP growth figures. It is believed that for a country of low and medium-income like India, it is necessary to achieve higher GDP growth year after year to meet the needs of the country’s growing population.
Common Belief of Human Life
The whole world is busy collecting wealth. Which country and person is ahead in the race of collecting more wealth is the main agenda to discuss on daily basis. The purpose of human life is better than being happy and unhappy by looking at the figures of wealth / GDP / economic growth. Do keep faith and worship of True God. Do not accumulate wealth, but the earnings of devotion help all time.
Kabir Ji has said that: –
Kya maangu kuchh sthir na rahayi, Dekhat nain chalaa jag jaayi |
Ek lakh poot sawa lakh naati, Us Ravan kae deeva na baati ||
O Man! What is this that you ask from God which is not even permanent? This desire arose due to a lack of spiritual knowledge. God gives you whatever is in your fate. Nothing is happening as a result of your efforts. Due to the results of both good and bad deeds, one has to intermittently bear the havoc of happiness and sorrows.
After gaining True Spiritual Knowledge, a man like a wise farmer will sow the crop of charity, meritorious deeds, and recitation of mantra every year in every season, and will consume it after storing it in his house, and will also sustain himself by selling it, that is, after taking initiation from a Complete Guru, he will collect his wealth of bhakti by doing worship and charity. Therefore, a Supreme Saint teaches the way of life to a human being. It is based on the true spiritual knowledge that is certified by all the holy scriptures. One Must read the Book Way of Living which can guide you to achieve growth and improve the performance of your life.