India’s gross domestic product (GDP) in the second quarter of the fiscal year 2021-22 grew at 8.4 per cent, according to the official data released by National Statistical Office (NSO) on November 30. India’s GDP number rose significantly against Covid-19-hit second quarter of the last fiscal. GDP had declined by 7.4 per cent in the same quarter last year.
India’s GDP in July-September quarter was in line with the predictions by the analysts and rating agencies. India Ratings expected the economy to grow 8.3 per cent in the second quarter and close the year with 9.4 per cent in FY’22. Reserve Bank Governor Shaktikanta Das earlier projected that Indian economy will grow at 9.5 per cent this fiscal, supported growth impulses and the fast-moving economic indicators.
GDP at Constant (2011-12) Prices in April-September 2021-22 (H1 2021-22) was estimated at Rs 68.11 lakh crore as against Rs 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.
The gross value added (GVA) had grown by 18.8 per cent in the last quarter. The private final consumption expenditure (PFCE) had increased sharply by 19.35 per cent.
India Q2 GDP: Sectoral Growth
The agriculture sector continued to grow at 4.5 per cent in the quarter under review while mining and quarrying grew at 15.4 per cent. Manufacturing sector rose 5.5 per cent in the second quarter while Construction sector grew 7.5 per cent. Both the sectors witnessed a moderated growth when compared to last quarter. Public Administration, Defence & Other Services sector grew at 17.4 per cent during the July-September quarter. Trade, Hotels, Transport, Communication & Services related to Broadcasting sector grew at 8.2 per cent during the quarter under review.
“The continued vaccine drive led mobility ahead and aid the pick-up in the contact-sensitive services sector has helped in a healthy growth print. Even with YoY moderation to 8.4 per cent frm 20.1 per cent Q1 reflects largely base effect even as sequential momentum has continued to improve. The data affirm that the economy is on continuous mend and will likely be back to pre-pandemic levels before end-FY22,” said Madhavi Arora, lead economist, Emkay Global Financial Services.
Commenting on India’s Q2 GDP data, Rajani Sinha, chief economist and national director – research, Knight Frank India said, “The improvement in GDP growth in Q2 FY22 is on expected lines. With increased vaccination and economy moving back to normalcy, most high frequency economic indicators have bounced back above pre-COVID levels. Corporate performance as reflected by quarterly results have also been showing healthy improvement in the economy. While consumption has recorded an improvement, a more broad-based consumption recovery would be critical for sustainable and inclusive growth. For that to happen it will be critical for the unorganized sector and the MSME segment to also bounce back quickly.”
India’s eight core sector data recorded 7.5 per cent growth during the month of October. Eight core sector came in at 15.1 per cent during the April-October period.
“The data will have a positive bearing on the RBI’s MPC meeting next week. The low interest, excess liquidity policy is paying good results. Going forward, the way countries across the globe handle the new variant of the pandemic, rising inflation, and movement of crude price will have an impact on the growth rate across the globe,” said Nish Bhatt, founder and CEO, Millwood Kane International said.
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