India’s GDP growth which stood at 20.1 per cent in the April-June quarter, fell to 8.4 per cent in the second quarter of 2021-22, mainly due to waning low base effect, official data showed on Tuesday.
The data, however, indicated that the economy has surpassed the pre-COVID level. The Indian economy had contracted by 24.4 per cent in April-June last year. The gross domestic product (GDP) had contracted by 7.4 per cent in the corresponding July-September quarter of 2020-21, according to data released by the National Statistical Office (NSO).
The slump has attributed to the lockdown that the government had imposed in view of the COVID-19 outbreak last year. In April-May this year, states reinforced the curbs in view of a massive second wave of the pandemic.
However, the economy has now surpassed the pre-COVID level. In value terms, the GDP stood at ₹35,73,451 crore in July-September 2021-22, higher than the ₹35,61,530 crore in the corresponding period of the 2019-20 financial year. The GDP had shrunk to ₹32,96,718 crore in July-September last year during the nationwide lockdown.
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 crore during the corresponding period of previous year, showing a growth of 13.7 per cent in H1 2021-22 as against a contraction of 15.9 per cent during the same period last year, it stated.
NSO data said that 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. Farm sector GVA growth was up at 4.5 per cent, compared to 3 per cent growth earlier. Similarly, the GVA in the construction sector GVA grew by 7.5 per cent compared to a slump of 7.2 per cent earlier. The mining sector grew by 15.4 per cent, as against a contraction of 6.5 per cent. Electricity, gas, water supply and other utility services segment posted growth of 8.9 per cent in the second quarter of this fiscal, against 2.3 per cent expansion in 2020.
Similarly, trade, hotel, transport, communication and services related to broadcasting 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 Q2 FY22 compared to a contraction of 9.1 per cent. Public administration, defence and other services grew at 17.4 per cent during the quarter under review, compared to 9.2 per cent contraction a year earlier.
Meanwhile, S&P Global Ratings have kept India’s economic growth forecast in the fiscal year to March 2022 unchanged at 9.5 per cent.
“India is learning to live with the virus. Following the peak in COVID-19 cases around mid-year, the stringency index has declined, mobility has recovered, and consumer and business confidence has improved,” S&P Global Ratings said in a report.
Despite inflation, external demand continues to support growth, the report said.
(With inputs from agencies)