economy

Indias GDP grows 8.4% in July-September: Govt

Indias GDP grows 8.4% in July-September: Govt

NEW DELHI: The Indian economy grew 8.4% in the second quarter of the current fiscal, as vaccination picked pace and services activities begun normalising, recovering from the impact of the second wave of the coronavirus pandemic in April-June. Data released by the statistics department showed that the agriculture sector grew 4.5%, while manufacturing grew 5.5% during the July-September quarter. Among services, construction, trade, hotel, transport, financial and real estate services grew at 7.5%, 8.2% and 7.8% respectively. Government expenditure also picked pace, growing at 17.4% during the second quarter. Data separately released by the Controller General of Accounts showed that the Centre had exhausted 52.4% of its total expenditure target by October against 54.6% during the same period a year ago. The finance ministry in its economic report said that the ebbing of the second covid wave, fast-paced vaccination and enhanced mobility aided economic recovery in September. While agriculture continues to bolster rural demand, exports continue to offer bright prospects, as per the ministry. The Reserve Bank of India (RBI) has forecast the countrys economy to grow 9.5% in FY22. The statistics ministry had reported a 20.1% GDP growth in the first quarter of this fiscal, helped by a low base. Fitch Ratings earlier this month reaffirmed its lowest investment grade (BBB-) sovereign rating for India, with negative outlook, holding that the country’s rating balances a still-strong medium-term growth outlook and external resilience from solid foreign-reserve buffers, against high public debt, a weak financial sector and some lagging structural issues. Fitch has projected India’s GDP growth at 8.7% for FY22 and 10% in FY23, to be supported by the resilience of Indias economy, which has facilitated a “swift cyclical recovery from the Delta covid-19 variant wave in the first quarter of FY22. “Mobility indicators have returned to pre-pandemic levels and high-frequency indicators point to strength in the manufacturing sector. The potential remains for a resurgence in coronavirus cases, though we anticipate the economic impact of further outbreaks would be less pronounced than previous surges, particularly given the sustained improvement in the covid-19 vaccination rate, which has now surpassed 1 billion doses administered, it added. Download.

economy 2021-11-30 Livemint