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. This year, a massive second wave of the pandemic hit the country in the middle of April, which forced states to impose fresh restrictions.
India’s GDP growth slowed to 8.4 per cent in the second quarter of 2021-22, mainly due to waning low base effect, but the economy has surpassed the pre-COVID level, official data showed on Tuesday.
The GDP growth in April-June quarter this fiscal stood at 20.1 per cent. The Indian economy had contracted by 24.4 per cent in April-June last year.
Chief Economic Adviser (CEA) K V Subramanian on Tuesday said India is expected to log double-digit growth in the current financial year, aided by rising demand and a robust banking sector.He also said the seminal second generation reforms would help the country grow over 7 per cent during this decade.
With regard to fiscal deficit, he said the Budget estimate is likely to be met.
The government estimates fiscal deficit at 6.8 per cent of the gross domestic product (GDP) for the current financial year ending on March 31, 2022.
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 government had imposed a nationwide lockdown at the onset of the COVID-19 pandemic last year.
This year, a massive second wave of the pandemic hit the country in the middle of April, which forced states to impose fresh restrictions.
However, the economy has now surpassed the pre-COVID level.
In value terms, the GDP stood at Rs 35,73,451 crore in July-September 2021-22, higher than the Rs 35,61,530 crore in the corresponding period of the 2019-20 financial year.
The GDP had shrunk to Rs 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 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.
According to the NSO data, 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.
Construction sector GVA grew by 7.5 per cent compared to a degrowth of 7.2 per cent earlier.
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 a year ago.
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, China has recorded a growth of 4.9 per cent in the July-September period of 2021.