Cheer in recession: GDP contracts at a slower pace of 7.5 per cent in Q2

As expected, agriculture held up yet again, clocking a growth of 3.4 per cent for the second consecutive quarter

With two successive quarters of decline in the gross domestic product (GDP), India on Friday officially entered a technical recession, but the gloom seems to be finally lifting. Reason: The economy did better than most estimates in the second quarter of the fiscal year as the contraction in GDP moderated from 24 per cent in April-June (Q1) to 7.5 per cent in July-September (Q2) over the previous year.

The GDP contraction printed better than the estimate of the Monetary Policy Committee (-9.8 per cent) and the RBI’s Nowcast (-8.6 per cent). The number was also better than other estimates, which