The Indian economy is witnessing a V-shaped recovery as the Gross Domestic Product (GDP) has recorded a quarter-on-quarter growth of 23% in the July-September quarter of this fiscal, according to the Finance Ministry's latest Monthly Economic Review.
The decline in the GDP narrowed to 7.5% in the second quarter of this financial year, over 23.9% contraction in the April-June quarter.
"The year-on-year GDP contraction of 7.5% in Q2 of 2020-21 underlies a quarter-on-quarter surge in GDP growth of 23%," it said.
"This V-shaped recovery, evident at the half-way stage of 2020-21, reflects the resilience and robustness of the Indian economy. The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery," the Monthly Economic Review for November said.
The growth drivers have obtained the largest support from agriculture followed by construction and manufacturing, it said, adding that the contact-sensitive services sector has also contributed although mainly through logistics and communication.
The recently celebrated festive season contributed to a rise in fresh COVID-19 positive cases in India, although numbers have started to decline again, a trend seen in many other countries, it said.
In general, it said, inflation has softened in advanced economies while climbing up further in emerging market economies reflecting a relatively larger impact of supply-side disruptions on economically more challenged countries in the world.