India's economy contracted by 7.5 percent between July and September, making it one of the worst-performing and emerging economies in the world, as it entered a technical recession for the first time since independence.
The French news agency AFP reported in the newspaper that official figures show that the economy has entered a recession.
Although the data improved from a record 23.9% contraction in the previous quarter, it indicates that Asia's third-largest economy is facing stiff competition as it seeks to restore demand and create jobs. Coronavirus infections are on the rise.
However, the contraction of the economy for two consecutive quarters means that the country has entered a "technical recession" for the first time since 1947.
The record growth in the quarter ended September 30 by major economies, including the United States, Japan, and Germany, following the global catastrophe caused by the virus lockdown, has raised expectations that India will also benefit from the recovery.
Although the festive season in October and November saw an increase in the consumer business, the impact on the construction and hospitality sectors dashed hopes of a large-scale recovery.
Manufacturing activity increased between July and September after a nearly 40 percent decline in the previous quarter due to the lockdown, while farming also remained relatively good.
Analysts said the figures were encouraging, suggesting that the economy is likely to improve in the next quarter.
"Looking at all the signals, the worst situation for the Indian economy is over. We will continue to see improvement and move on," said Sameer Narang, chief economist at the State Bank of Broda.
He said Friday's figures disproved the bank's estimate of an 8% contraction, adding that there was a possibility of economic recovery unless there was a new lockdown as the infection spreads.
Vivek Kumar, an economist at Quantum Eco Research, said the increase in manufacturing was good for India after the long shutdown of factories due to prolonged lockdowns in late March.
According to estimates released last month by Central Bank of India Governor Shakti Kantadas, New Delhi has begun a struggle to revive its economy, which is expected to shrink by 9.5 percent this year.
The International Monetary Fund (IMF) has predicted that India's economy will shrink by 10.3 percent this year, the biggest crisis for any major emerging economy and the worst since independence.
In addition, a report released by Oxford Economics earlier this month said that India's economy would be hit hardest by easing sanctions on epidemics and that annual production would be 12 percent lower than before the virus by 2025.
