NewDelhi Dec 1 : India’s economic recovery strengthened in the July-September quarter, boosted by a pick-up in consumer spending, moving gradually back to normalcy as the Covid-19 related disruptions eased considerably after the devastation caused by the deadly coronavirus second wave.
Data released by the government on Tuesday (November 30) demonstrated that gross domestic product (GDP) for the second quarter of the financial year grew by 8.4 per cent from a year ago-a fourth straight quarter of expansion. However, the fast-spreading Omicron coronavirus variant raised fears for the future, though the scale of damage will depend on the strength of the strain itself. The economy expanded 1.6 per cent and 20.1 per cent in the January-March and April-June quarters, respectively. China has posted a growth of 4.9 per cent in the July-September period of 2021.
Worth mentioning here is that India’s economic recovery gained momentum in recent months because the country has accelerated its Covid-19 vaccination campaign, festive season and positive consumer and industry sentiments. Several key indicators such as exports, power generation, rail freight and bank deposits point towards improvement in growth momentum in October. The goods and services tax (GST) collected in October surged to Rs 1.30 lakh crore, the second-highest since its implementation in July 2017.
Earlier, the Reserve Bank of India (RBI) had predicted the real GDP growth rate for July-September at 7.9 per cent.
“GDP at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 35.73 lakh crore, as against Rs 32.97 lakh crore in Q2 2020-21, showing a growth of 8.4% as compared to 7.4% contraction in Q2 2020-21. Quarterly GVA at Basic Prices at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 32.89 lakh crore, as against Rs 30.32 lakh crore in Q2 2020-21, showing a growth of 8.5%,” according to data released by the National Statistical Office (NSO) on Tuesday.