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India’s GDP fell by 7.5% in July-September, economy in technical recession for first time ever

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A country’s economy is said to hit recession when its GDP growth is negative for two consecutive quarters or more.
India’s Gross Domestic Product growth rate contracted by 7.5% for the second quarter (July-September) of the current financial year, government data showed on Friday. With this, the country’s economy slipped into a technical recessionary phase for the first time ever – when its GDP growth is negative or declining for two consecutive quarters or more. India’s economy had contracted by an unprecedented 23.9% in the first quarter (April-June) of this financial year, after being hit by the coronavirus pandemic and the subsequent economic slowdown. In gross value added terms, the economy has now contracted 7% compared to a fall of 22.8% in the last quarter, showed the data released by the Ministry of Statistics and Programme Implementation. Sector wise breakup revealed that mining contracted 9.1% compared to a fall of 23.3% in the last quarter.

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