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.
“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.
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.
“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.
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.