Industrial output 35.9% contracted in June quarter but the rate of contraction slowed down to 16.6% in June and 33.89% in May from 57.62% in April. Exports which contracted by over 60% year-on-year in April to $10.36 billion from year ago
NEW DELHI: Key sectors of the economy made incremental recovery in May and June after a severe shock in April, with the Indian economy suffering a devastating contraction in the first three months of this fiscal, as per high frequency data.
The gradual recovery in the latter part of the June quarter pointed to economic activities picking up although the recovery could be staggered and prolonged.
Industrial output contracted in June quarter by 35.9% but the rate of contraction slowed down to 16.6% in June and 33.89% in May from 57.62% in April. Exports which had shrunk over 60% year-on-year in April to $10.36 billion improved in the subsequent two months. Official data showed the 36.47% contraction in exports in May eased to 12.41% in June.
The revenue central and state governments collected in Goods and Services Tax (GST) too improved in June when compared with the mop-up in April. GST collections in the June quarter stood at ₹1.8 trillion, 59% of the ₹3.1 trillion collected in the same period a year ago, showing how consumption got impacted in the first three months of this fiscal.