Indian economy surpasses pre-Covid level as GDP grows at 8.4% in Sept quarter
The Indian economy had shrunk in 2020-21 fiscal as the coronavirus disease (Covid-19) pandemic induced restrictions battered business activity. The gradual lifting of the restrictions has helped the economy to rebound from pandemic lows.
India's Gross Domestic Product (GDP) grew by 8.4 per cent in the second quarter of the current financial year, according to the data released by the government on Tuesday. The ministry of statistics and programme implementation released the estimates of GDP both at constant and current prices. The data showed that the economy has surpassed the pre-Covid level.
The government have taken several steps to revive the economy battered by the Covid-19 pandemic.
“GDP at Constant (2011-12) Prices in Q2 2021-22 is estimated at ₹35.73 lakh crore, as against ₹32.97 lakh crore in Q2 2020-21, showing a growth of 8.4 per cent as compared to 7.4 per cent contraction in Q2 2020-21,” the ministry said.
At current prices, the GDP is estimated at ₹55.54 lakh crore, as against ₹47.26 lakh crore in Q2 2020-21, showing a growth of 17.5 per cent as compared to 4.4 per cent contraction in the same period last year, the ministry added.
The Indian economy had shrunk in 2020-21 fiscal (April 2020 to March 2021) as the coronavirus disease (Covid-19) pandemic induced restrictions battered business activity.
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The gradual lifting of the restrictions and fiscal and monetary measures and ₹20 lakh crore stimulus package, have helped the economy to rebound from pandemic lows.
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The gradual lifting of the restrictions and fiscal and monetary measures and ₹20 lakh crore stimulus package, have helped the economy to rebound from pandemic lows.
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“GDP at Constant (2011-12) Prices in April-September 2021-22 (H1 2021-22) is estimated at ₹68.11 lakh crore as against ₹59.92 lakh crores during the corresponding period of previous year, showing a growth of 13.7 per cent in H1 2021-22 as against contraction of 15.9 per cent during the same period last year,” the ministry said in a release.
According to the government data, gross value added (GVA) growth in the manufacturing sector accelerated to 5.5 per cent in the second quarter of 2021-22, compared to a contraction 1.5 per cent a year ago.
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Providing a sector-wise break-up of the growth, the data from National Statistical Office (NSO) said that electricity, gas, water supply and other utility services segment posted growth of 8.9 per cent against 2.3 per cent expansion a year ago, while trade, hotel, transport and communication grew by 8.2 per cent compared to 16.1 per cent contraction earlier.
Financial, real estate and professional services growth stood at 7.8 per cent in the quarter for which the data has been released, compared to a contraction of 9.1 per cent. Similarly, defence and other services grew at 17.4 per cent during the September quarter, compared to 9.2 per cent contraction a year earlier.
Recent high-frequency indicators such as the October services purchasing managers' index reading of 58.4 had suggested that a strong recovery is underway.
Shishir Gupta is Executive Editor at Hindustan Times and one of India's top journalists covering national security, strategic affairs, foreign policy and geopolitics. Over the past three decades, he has extensively reported on India's military, diplomatic and security landscape, covering every major conflict and national security challenge, from the 1999 Kargil War and the 2020 East Ladakh standoff to Operation Sindoor in 2025. He has also covered major terror attacks, including the IC-814 hijacking, the 26/11 Mumbai attacks and the 2025 Pahalgam terror strike, along with numerous Pakistan-backed terrorist incidents in the Kashmir Valley and across India. He has reported on national and state elections for more than three decades. A recognised authority on strategic affairs, Gupta has covered India's nuclear programme since the Pokhran-II (Shakti series) tests in May 1998 and has written extensively on global nuclear issues, Indian diplomacy and the country's expanding global outreach. He has also reported widely on international conflicts and terrorism, with a special focus on the Indian subcontinent. Gupta has interviewed Prime Minister Narendra Modi more than four times, including Modi's first interview with the print media after becoming Prime Minister in May 2014. His other interviews include three with the Dalai Lama, as well as conversations with Benjamin Netanyahu, Amit Shah, Yogi Adityanath, S. Jaishankar, Nirmala Sitharaman and Piyush Goyal. He is the author of Indian Mujahideen: The Enemy Within (Hachette, 2011) and Himalayan Face-off: Chinese Assertion and Indian Riposte (Hachette, 2014). He was awarded the Chevening-Wolfson Joint Scholarship at Wolfson College, University of Cambridge, UK, in 1998 and participated in the International Visitor Leadership Program (IVLP) of the US State Department in 2006. He received the Ben Gurion Prize from Israel in 2011 and the K. Subrahmanyam Prize for Strategic Studies in 2015 from the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA). Since 2024, he has hosted Point Blank, Hindustan Times' weekly YouTube show on global geopolitics.
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Home/Business/Indian economy surpasses pre-Covid level as GDP grows at 8.4% in Sept quarter
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