New Delhi | Jagran Business Desk: The Ministry of Statistics and Programme Implementation on Friday said that GDP in the third quarter of 2020-21 shows growth at 0.4 per cent, marking a return to a positive trajectory after two-quarters of the slide. A sharp improvement in the Covid-19 situation and rising public spending were are the two factors behind the uptick, the government said. 

"The GDP at constant (2011-12) prices in Q3 of 2020-21 is estimated at Rs 36.22 lakh crore as against Rs 36.08 lakh crore in Q3 of 2019-20, showing a growth of 0.4 per cent," said the National Statistical Office (NSO). 

The gross domestic product (GDP) had expanded by 3.3 per cent in the corresponding period of 2019-20, according to the data released by the National Statistical Office (NSO). In its second advance estimates of national accounts, the NSO has projected 8 per cent contraction in 2020-21.

In its first advance estimates released in January, it had projected a contraction of 7.7 per cent for the current fiscal as against a growth of four per cent in 2019-20. The economy had shrunk by an unprecedented 24.4 per cent in the first quarter this fiscal following the coronavirus pandemic and resultant lockdowns.

In the second quarter, the GDP declined 7.3 per cent due to a perk up in economic activities. China's economy grew by 6.5 per cent in October-December 2020, faster than the 4.9 per cent growth in July-September 2020.

Earlier in the day, Indian shares closed nearly 4% lower, ahead of the GDP data announcement by the government, as a broader global selloff due to a rout in global bond markets weighed on sentiment.

The blue-chip NSE Nifty 50 index shed 3.76% to close at 14,529.15, while the benchmark S&P BSE Sensex ended 3.80% lower at 49,099.99. Both indexes fell as much as 4.2% earlier in the day and posted their worst session since early May last year.

The Nifty and Sensex had gained more than 10% in February until Thursday's close on the back of solid corporate earnings and a well-received federal budget. After Friday's rout, they are still up more than 6% for the month. 

(With Agencies Inputs)

Posted By: Talibuddin Khan