India's economy contracted by 7.5 per cent in the July-September quarter following a record slump of 23.9 per cent in the previous three months, pushing the country into a recession for the first time in its history.
The contraction occurred despite the government's lifting of a strict two-month lockdown imposed across the country in March after the outbreak of the pandemic.
A country enters a technical recession if its economy contracts for two successive quarters.
Data released on Friday by the National Statistical Office showed industry normalising faster than the service sector.
Manufacturing grew by 0.6 per cent in July-September after shrinking by a massive 39 per cent in the preceding quarter, the report said.
While the agriculture sector grew by 3.4 per cent, trade and services contracted by 15.6 per cent, it said.
The 23.9 per cent GDP contraction in the April-June quarter triggered massive unemployment in small and medium-size businesses and created rural distress.
The government announced stimulus packages after it lifted the lockdown imposed in March.
Finance Minister Nirmala Sitharaman said a strong economic recovery is taking root, citing an increase in tax collections for goods and services.
Australian Associated Press