The Indian economy contracted by 23.9% y/y in the second quarter

As a result of ongoing global slowdown and one of the world's most stringent and logistically complex pandemic related lockdowns, involving more than a billion people, the Indian economy contracted by a massive 23.9% y/y in Q2 2020, after it grew by only 3.1% y/y in the previous quarter. Consumption plummeted, private investment collapsed and exports plunged in Q2 2020.

Gross fixed capital formation (investment) contracted by 47.1% y/y in Q2 2020, compared to a decline of 6.5% and 5.2% in Q1 2020 and Q4 2019 respectively. Private consumption growth contracted sharply by 26.7% y/y in Q2 2020, after declining by 2.7% in Q1 2020, and remained substantially lower than in previous quarters. Government expenditure grew by 16.5% y/y in Q2 2020, after growing by 13.6% y/y in Q1 2020.

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