New Delhi: The expected dip in India’s economic growth in the second quarter of 2020-21 could actually be among the highest sequential improvement showing countries in the world. From an unprecedented 23.9% contraction in the June quarter, the economy is seen shrinking 8.6% in the September quarter, as per the central bank and 10.2% according to independent economists polled by ET. But, economists cautioned against getting carried away by the improvment.
This could mean a jump of 13.7-15-3 percentage points or a reduction in contraction by anywhere between 57-64%. This is higher than the UK’s 12 percentage points jump or 55.35% improvement.
While most economies have shown significant sequential improvement in the September quarter, the GDP contraction for many halved. China’s economy grew 4.9% in the last quarter as against 3.2% in the June ended quarter, an improvement of 1.7 percentage points or 53.1%.
The expected contraction in GDP in the second quarter is lower than the median 11.95% shrinkage projected earlier in an ET poll in September.
