India’s GDP grows at 8.4% in Q2FY22

India’s GDP (gross domestic product) growth rate for the second-quarter for the financial year 2021-22 came in at 8.4%, as against a contraction of 7.4% in the corresponding period of the previous fiscal year, government data showed on Tuesday. Economic recovery strengthened in the July-September quarter, helped by a pick-up in consumer spending, though the spread of the Omicron coronavirus variant raises fears for the future.

“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 percent as compared to 7.4 percent 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 percent,” said Ministry of Statistics & Programme Implementation.

The Indian economy expanded 1.6% and 20.1% in the January-March and April-June quarters, respectively.

The economy grew 20.1% in the first quarter of FY22, largely on a very low base of 24.4% contraction a year ago.

India’s economic recovery strengthened in Q2FY22, boosted by services activity that recovered after pandemic-related mobility restrictions were eased. Asia’s third-largest economy has been seeing a rebound from last year’s deep slump, boosted by rising vaccination rates and a pick-up in government spending.

In October, the Reserve Bank of India has retained its growth forecast at 9.5% for FY22. The economy is expected to clock 7.9% in Q2; 6.8% in Q3; and 6.1% in Q4 of 2021-22, said RBI.

Private economists have said economy is on the cusp of recovery helped by a resilient farm sector growth, but risks included slowing global growth, rising manufacturing prices as well as new variants of COVID-19.

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