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Improved sentiments, low base effect behind 8.4% GDP growth
In the corresponding quarter last fiscal, the Indian economy had shrunk 7% due to the outbreak of COVID cases
The nation’s GDP grew 8.4% in the quarter ended September 2021, as economic activity recovered gradually from a virulent second wave of the COVID pandemic.
But primarily behind the increased numbers was the low base effect. In the second quarter of FY 2020-21, when the first wave of COVID was wreaking havoc on an unvaccinated global population, the Indian economy had contracted by over 7%.
In the latest quarter, business sentiments improved with a fall in COVID caseload and resultant easing of lockdowns. The rising vaccination rates also vastly brightened the picture.
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