India Q2 GDP Data: All You Need To Know
Growing by 8.4 per cent in the second quarter of the current fiscal - India grew at the fastest pace among major economies - surpassing the pre-COVID levels, according to government data.
Economists said disruptions from the new Omicron coronavirus variant risked slowing the recovery, especially given India's low vaccination rates. The global slowdown and rising manufacturing prices also pose risks to the economic growth.
The manufacturing activity expanded 5.5 per cent and farm output rose 4.5 per cent during the September quarter, which boosted the recovery as lower interest rates lifted consumer spending and investments.
Consumer spending - the main driver of the economy - rose 8.6 per cent from a year earlier in the July-September quarter, after a growth of 19.3 per cent growth in the previous quarter.
The Reserve Bank of India, which has maintained an accommodative stance to support the economy, has predicted annual growth of 9.5 per cent in the current fiscal - same as the projection by the International Monetary Fund for the country.
While briefing the media on Tuesday, Chief Economic Adviser (CEA) K V Subramanian said India is expected to log double-digit growth in the current financial year, supported by growth in demand and a robust banking sector.
Corporate income and profit are above the pre-pandemic level, and fresh private investment has been complemented by capital expenditure, according to the Chief Economic Adviser.
The country's policy focuses on both supply and demand which kept inflation under control, however, global inflation stems from an exclusive focus on the demand side, according to finance ministry's statement today.
The GDP contracted by 7.5 per cent in the corresponding quarter of the previous fiscal 2020-21, which resulted in India's first technical recession - upon two consecutive quarters of GDP contraction, since 1996, as the pandemic-induced lockdown threatened the pace of the economy and brought industrial activity to a halt.
Recording its worst-ever performance in more than four decades, India registered a de-growth of 7.3 per cent for the fiscal year 2020-21, putting it among those major economies hit hardest by the COVID-19 pandemic.